Latest capital injection raises Adani family’s stake in Ambuja Cement to 70.3% (representative)
New Delhi:
Billionaire Gautam Adani’s family has infused an additional Rs 8,339 crore in Ambuja Cements, raising its stake in the company to 70.3 per cent to increase the cement maker’s production capacity.
The Adani family had previously invested Rs 5,000 crore in the company on October 18, 2022, and Rs 6,661 crore on March 28, 2024. The company said in a statement that with the latest investment, it has completed its planned capital infusion of Rs 20,000 crore.
“The company’s promoters, the Adani family, have fully subscribed to the company’s warrant scheme, injecting a further Rs 8,339 crore, taking the total capital infusion to Rs 20,000 crore,” the statement said.
The latest capital infusion increases the Adani family’s stake in Ambuja Cement by 3.6% to 70.3%.
Overall, its stake in Ambuja Cement has increased from 63.2% to 70.3%.
The capital infusion will help Ambuja accelerate its growth target to increase existing production capacity to 140 million tons per year by 2028 from 76.1 million tons as of December 31.
“The promoters have further strengthened Ambuja post-acquisition, providing Ambuja with capital flexibility to accelerate growth, capital management initiatives and best-in-class balance sheet strength to achieve its various strategic initiatives,” the statement said.
In 2022, Adani Group entered the cement industry by acquiring Ambuja and ACC from Swiss giant Holcim for US$10.5 billion.
“This strategic move underscores the strong commitment to sound capital management philosophy across the portfolio companies and the latest investment is a testament to the Adani family’s commitment to enhancing the future prospects and potential of the cement vertical.
“The additional investment will strengthen the company’s financial position and enhance its ability to deliver on its ambitious growth plans and capitalize on emerging opportunities in the market,” the statement said.
Ambuja Cement said that besides facilitating capacity expansion, the capital infusion will drive various strategic initiatives, including removing capital expenditure bottlenecks, improving operational performance, and improving resource and supply chain efficiencies, adding that the company will also Drive innovation and product enhancement: Advanced technology integration provides better services to meet the growing needs of the industry driven by India’s economic growth.
Ajay Kapur, CEO, Ambuja Cement Limited, said: “We are pleased to announce that the Adani family has completed its maiden infusion of Rs 20,000 crore into Ambuja.
“This infusion of capital provides Ambuja with capital flexibility for rapid growth, a capital management plan and best-in-class balance sheet strength. This not only demonstrates our strong belief in our vision and business model, but also reinforces our commitment to “Delivering long-term sustainable value creation for our stakeholders will drive us to set new benchmarks, accelerate our growth and continue to achieve operational excellence, business synergy and cost leadership.”
Barclays, Mitsubishi UFJ, Mizuho and Standard Chartered acted as advisors on the transaction.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
(Disclaimer: NDTV is a subsidiary of AMG Media Networks Limited, part of the Adani Group.)
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