The Adani family invests Rs. 6.7 billion in Ambuja

MUMBAI: According to a press statement from the firm, the billionaire Gautam Adani-controlled Adani Group has invested Rs 6,661 crore in Ambuja Cements, increasing its ownership by 3.6% to 66.7%.
An affiliate of the company, Harmonia Trade & Investment, exchanged 21.2 crore warrants for shares at a price of Rs 314 each. Ambuja Cements’ shares on the BSE finished at Rs 612 on Thursday, up 1.8% for the day in the robust market.

According to the statement, the promoters’ investment would provide it “with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market.”.
The cement major is the second biggest in the nation by capacity. In October 2022, the promoter group subscribed to warrants, which were then converted into equity shares—an infusion of Rs 5,000 crore into the company.

The announcement said that the Adani Group’s cement industry would greatly benefit from the financial injection, as the company intends to increase its capacity to 140 million metric tonnes annually by 2028. Additionally, Ambuja Cements has a majority share in ACC, a significant cement player.
The Ambuja Cements board of directors authorised the conversion of the warrants into 21.2 crore equity shares of the business on Thursday.

“With this, the promoters have infused Rs 11,661 crore in Ambuja Cements post-acquisition, giving the company capital flexibility for accelerated growth, capital management initiatives, and best-in-class balance sheet strength to accomplish its various strategic initiatives,” said the announcement. Ajay Kapur, CEO of Ambuja Cements, said, “It is not only a testament to 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.”.

18 integrated cement production facilities and 18 cement grinding units throughout the nation, along with Ambuja’s subsidiary ACC, have the potential to generate 77.4 million metric tonnes of cement annually, according to reports. Sanghi Industries was recently bought by it.

The Adani Group paid cash proceeds of $6.4 billion (about Rs 51,000 crore) to Swiss company Holcim in September 2022 to purchase controlling holdings in Ambuja Cement. Subsequently, it had also launched an open offer for Rs 31,000 crore to buy 26% more shares from the general public.