Ahmedabad (Gujarat) [India], April 17 : Adani family has infused an additional Rs 8,339 crore in Ambuja Cements Ltd (Ambuja), the cement and building materials flagship company under Adani group portfolio.
The Adani family has fully subscribed to the warrants programme in the company by
further infusing Rs 8,339 crore and has infused a total amount of Rs 20,000 crore, increasing their stake in the company by 3.6 per cent to 70.3 per cent.
This follows the investment of Rs 5,000 crore on October 18, 2022 and Rs 6,661 crore on March 28 2024, which was for part issuance of the shares, a company release said.
"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," the release said.
The release said 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.
The funds infusion will be instrumental to achieving the capacity of 140 million tonnes per annum by 2028 by the cement vertical.
"Further, it shall also enable various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain. This shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy," the release said.
"We are thrilled to announce completion of Adani family's primary infusion of Rs 20,000 crore in Ambuja," said Ajay Kapur, Whole Time Director and CEO, 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 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."
Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisor for the transaction.
Ambuja, with its subsidiaries ACC Ltd. and Sanghi Industries Ltd, has taken the Adani Group's cement capacity to 78.9 MTPA with 18 integrated cement manufacturing plants and 19 cement grinding units across the country, the release said.