Adanis infuse ₹5,000 cr to raise stake in Ambuja to 67%
STRATEGIC MOVE. Promoters have pumped in ₹11,661 cr into company post acquisition
The promoters of Ambuja Cements have infused ₹5,000 crore in the company to increase their stake by 3.6 per cent to 66.7 per cent.
The Adani family invested ₹5,000 crore by converting the warrants issued by the board in October 2022.
The strategic move underscores the promoters’ commitment to have robust capital management philosophy for the portfolio companies and boost future prospects of cement vertical, said Ambuja Cements in a statement on Thursday.
Overall, the promoters have infused ₹11,661 crore in Ambuja post acquisition from the Swissheadquartered Holcim Group in September, 2022.
The additional investment will strengthen the company’s financial position, providing it with enhanced capabilities to pursue its growth plans and capitalise on emerging opportunities in the market.
USE OF FUNDS
The fresh fund infusion will aid the company to achieve the targeted cement capacity of 140 million tonnes per annum by 2028. It will also fuel various strategic initiatives including debottlenecking capex to ensure scalability and bring efficiencies across resources and supply chain, said the company.
The investment will also drive innovation through adoption of advanced technology for better service offerings to tap the growing requirements of the sector. Ajay Kapur, WholeTime Director and CEO, Ambuja Cements, said the infusion of funds provides capital flexibility for fasttracking growth, capital management initiatives and improved balance sheet strength.
It reinforces the company’s commitment to deliver longterm sustainable value creation to stakeholders and deliver on operational excellence, business synergies and cost leadership, he said.
Barclays Bank PLC, MUFG Bank and Standard Chartered Bank acted as advisor for the transaction.
On October 18, 2022, the finance committee of the company allotted 47.75 crore warrants at ₹419 as part of the private placement on preferential basis to promoter group company Harmonia Trade and Investment.