The Free Press Journal

ADANI FAMILY FURTHER INFUSES `8,339 CR IN AMBUJA CEMENTS

Raises its stake in the company to 70.3%. With this investment, it has completed `20K cr planned infusion

- / New Delhi

Billionair­e Gautam Adani's family infused an additional Rs 8,339 crore in Ambuja Cements, raising its stake in the company to 70.3 per cent, to help the cement maker's manufactur­ing capacity.

The Adani family previously invested Rs 5,000 crore in the company on October 18, 2022, and Rs 6,661 crore on March 28, 2024. With the latest investment, it has completed Rs 20,000 crore planned infusion, the company said in a statement.

"The promoters of the company - Adani family - has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore," it said.

The latest infusion raises the Adani family stake in Ambuja Cement by 3.6 per cent to 70.3 per cent.

In all, its holding in Ambuja Cement has increased from 63.2 per cent to 70.3 per cent.

The fund infusion will help Ambuja accelerate its growth ambitions to almost double its existing capacity to 140 million tonnes per annum by 2028 from 76.1 million tonnes as of December 31. "With this, promoters have further strengthen­ed Ambuja post-acquisitio­n, giving Ambuja capital flexibilit­y for accelerate­d growth, capital management initiative­s and best-in-class balance sheet strength to accomplish its various strategic initiative­s," the statement said.

In 2022, the Adani group entered the cement sector with a USD 10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim.

"This strategic move underscore­s unwavering commitment to have a robust capital management philosophy for the portfolio companies, and the latest investment testifies the commitment by the Adani family to boost future prospects and potential of cement vertical.

"The additional investment will fortify the company's financial position, providing it with enhanced capabiliti­es to pursue its ambitious growth plans and capitalise on emerging opportunit­ies in the market," the statement said.

Besides helping in capacity expansion, the funds infusion would also enable various strategic initiative­s, including debottlene­cking capex, to enhance operationa­l performanc­e, as well as bringing efficienci­es across resources and supply chain, Ambuja Cement said, adding that it shall also drive innovation and product enhancemen­t through advanced technology integratio­n for better service offerings to tap the growing requiremen­ts of the sector driven by the growth in the Indian economy.

"We are thrilled to announce the completion of the Adani family's primary infusion of Rs 20,000 crore in Ambuja," said Ajay Kapur, CEO of Ambuja Cements Ltd.

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