Billionaire Gautam Adani’s household infused an extra ₹8,339 crore in Ambuja Cements, elevating its stake in the corporate to 70.3%, to assist the cement maker’s manufacturing capability.
The Adani household beforehand invested ₹5,000 crore in the corporate on October 18, 2022, and ₹6,661 crore on March 28, 2024. With the newest funding, it has accomplished ₹20,000 crore deliberate infusion, the corporate stated in an announcement.
“The promoters of the company – Adani family – has fully subscribed to the warrants program in the company by further infusing ₹8,339 crore, thereby infusing a total amount of ₹20,000 crore,” it stated.
The newest infusion raises the Adani household stake in Ambuja Cement by 3.6% to 70.3%.
In all, its holding in Ambuja Cement has elevated from 63.2% to 70.3%.
The fund infusion will assist Ambuja speed up its development ambitions to nearly double its present capability to 140 million tonnes each year 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 assertion stated.
In 2022, the Adani group entered the cement sector with a $10.5 billion deal to purchase Ambuja and ACC from Swiss big 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 assertion stated.
Besides serving to in capability growth, the funds infusion would additionally allow numerous strategic initiatives, together with debottlenecking capex, to improve operational efficiency, in addition to bringing efficiencies throughout assets and provide chain, Ambuja Cement stated, including that it shall additionally drive innovation and product enhancement via superior expertise integration for higher service choices to faucet the rising necessities of the sector pushed by the expansion in the Indian economic system.
“We are thrilled to announce the completion of the Adani family’s primary infusion of ₹20,000 crore in Ambuja,” stated Ajay Kapur, CEO of Ambuja Cements Ltd.
“This infusion of funds provides Ambuja, capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only a testament to a steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders, and this shall propel us towards setting new benchmarks, accelerating our growth, and continuing to deliver on operational excellence, business synergies and cost leadership.” Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors for the transaction.
