Adanis infuse ₹5,000 crore to raise stake in Ambuja by 3.6%

The promoters of Ambuja Cements have infused ₹5,000 crore in the company to increase their stake by 3.6 per cent to 66.7 per cent.

Adani family invested ₹5,000 crore by converting the warrants issued by the board of the company in October 2022. With this, the Adani family has increased their stake in the company by 3.6 per cent to 66.7 per cent, said Ambuja Cements in a statement on Thursday.

• Also read: Adani family boosts stake in Ambuja Cements; Shares rise 1.45%

The strategic move underscores the promoters commitment to have robust capital management philosophy for the portfolio companies and boost future prospects of cement vertical, it added.

The additional investment will strengthen the company’s financial position, providing it with enhanced capabilities to pursue its growth plans and capitalise on emerging opportunities in the market.

Overall, the promoters have infused ₹11,661 crore in Ambuja post acquisition from the Swiss-headquartered Holcim Group in September, 2022.

• Also read: Adani acquires Holcim stake in ACC-Ambuja in a $10.5-billion deal

The fresh fund infusion will aid the company to achieve the targeted cement capacity of 140 million tonnes per annum by 2028. It will also fuel various strategic initiatives including debottlenecking capex to ensure scalability and bring efficiencies across resources and supply chain, said the company.

The investment will also drive innovation through adoption of advanced technology for better service offerings to tap the growing requirements of the sector.

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said the infusion of funds provides capital flexibility for fast-tracking growth, capital management initiatives and improved balance sheet strength.

It reinforces the company’s commitment to deliver long-term sustainable value creation to stakeholders and deliver on operational excellence, business synergies and cost leadership, he said.

Barclays Bank PLC, MUFG Bank and Standard Chartered Bank acted as advisor for the transaction.

On October 18, 2022, the finance committee of the company allotted 47.75 crore warrants at ₹419 as part of the private placement on preferential basis to promoter group company Harmonia Trade and Investment.

Ambuja Cements has more than doubled its consolidated net profit in the last three quarters of this fiscal to ₹3,212 crore against ₹1,405 crore logged in the same period last year. Its revenue was up five per cent at ₹24,266 crore (₹23,071 crore).

With the focus on improving efficiency, its realisation was up at ₹1,103 per tonne against ₹606 in the same period last year.

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