The Adani group finances Ambuja Cements with Rs 8,339 crore
The Ambuja Cements proprietors, the Adani Family, have invested Rs 8,339 crore to convert the last tranche of warrants granted for the company into stock. The Adani family currently owns 70.3% of Ambuja, an increase of 3.6%.
Adani Group said in a statement on Wednesday that “the promoters of the Company, Adani family, has fully subscribed to the warrants program in the company by further infusing Rs 8,339 Cr thereby infusing a total amount of Rs 20,000 crore.”
This new investment comes after two previous ones, on October 18, 2022, for Rs 5,000 crore and March 28, 2024, for the partial issuing of shares, respectively. Ambuja Cements announced the allocation of 47.74 crore warrants to Harmonia Trade and Investment Limited (an Adani Family firm) at an issue price of Rs 418.87 per warrant, after Adani’s September 2022 acquisition of Holcim’s Indian assets (Ambuja and ACC). Every warrant had an 18-month expiration period from the date of allocation and may be converted into one equity share.
By October 18, 2022, when this announcement was made, 25% of the issue had already been subscribed to by the Adani Family. On March 28, it subsequently exercised and converted 21.20 crore worth of warrants into 21.20 equity shares of the company. On Wednesday, the warrants that remained were converted into stock.
According to the latest warrant conversion application by Adani to the BSE, 26.54 crore equity shares of the business were allotted at a premium of Rs 416.87 per share.
“This infusion of funds provides Ambuja with capital flexibility for fast-tracked growth, capital management initiatives, and best-in-class balance sheet strength,” said Ajay Kapur, Whole Time Director and CEO of Ambuja Cements.
According to the Adani Group, the cement vertical would be able to reach its capacity of 140 million tonnes per year (MTPA) by 2028 with the help of the cash injection. On Monday, Ambuja Cements announced that it will pay Rs 413.75 crore to purchase the cement grinding mill owned by My Home Group in Tuticorin, Tamil Nadu. The capacity of My Home Group is 1.5 MTPA.
