Gautam Adani’s family has invested Rs 6,661 crore in Ambuja Cements in order to raise their stake in the company by 3.6% to attain 66.7% holding.
This follows the investment of Rs 5,000 crore invested by the promoter of the company for exercising the warrants issuance approved by the board of the Company in October 2022.
“This strategic move underscores unwavering commitment to have robust capital management philosophy for the portfolio companies and the latest investment testifies the commitment by Adani family to boost future prospects and potential of cement vertical,” Ambuja Cements said in a regulatory filing. “The additional investment will fortify the company’s financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalize on emerging opportunities in the market,” it said.
Per the company, this addition will help to increase the group’s cement strength to 140 million tonnes per annum by the year 2028.
“We are thrilled to announce Adani family’s decision to increase their stake in Ambuja. 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 the 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 accelerating our growth and continue to deliver on operational excellence, business synergies and cost leadership,” said Ajay Kapur, Whole Time Director and CEO, Ambuja Cements Ltd.
Barclays Bank PLC, MUFG Bank and Standard Chartered Bank played the role of advisors for the transaction.
