The Adani promoter family has infused ₹8,339 crore more into Ambuja Cements, by fully subscribing to the warrants issued by the company and raising promoter stake to 70.3 per cent from 63.2 per cent.
This takes the total fund infusion to ₹20,000 crore, with the earlier investment of ₹5,000 crore in 2022 and ₹6,661 crore in March this year.
- Also read: Adani Group’s Ambuja Cements to acquire My Home Group’s cement grinding unit in Tuticorin
The funds will be used by the cement companies to double annual production capacity to 140 million tonnes (mt) by 2028. With this, promoters have further strengthened Ambuja post acquisition, giving capital flexibility for accelerated growth, capital management initiatives and best-in-class balance sheet strength to accomplish its various strategic initiatives, a company release said.
Use of funds
Apart from the capacity expansion, the funds will also be used to debottleneck production to boost operational performance, and bring in efficiencies across resources and supply chain.
Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisor for the transaction.
Ambuja Cements is expanding both organically as well as inorganically. On Monday, it announced buying a 1.5-mtpa cement grinding unit in Tuticorin for ₹414 crore from My Home Group. The total cement capacity of the Adani Group is around 79 mt now.