New Delhi:
Billionaire Gautam Adani's family injected another Rs 8,339 crore into Ambuja Cements, raising its stake in the company to 70.3%, to help the cement maker's production capacity.
The Adani family had earlier invested Rs 5,000 crore in the company on October 18, 2022, and Rs 6,661 crore on March 28, 2024. With the latest investment, it has completed the planned Rs 20,000 crore infusion, the company said in a statement.
“The promoters of the company – the Adani family – have fully subscribed to the warrant program in the company by adding another Rs 8,339 crore, injecting a total amount of Rs 20,000 crore,” the report said.
The latest infusion will increase the Adani family's stake in Ambuja Cement by 3.6% to 70.3%.
In total, its stake in Ambuja Cement has increased from 63.2% to 70.3%.
The fund injection will help Ambuja accelerate its growth ambitions to almost double its existing capacity to 140 million tonnes per annum by 2028, from 76.1 million tonnes as of December 31.
“With this, the promoters have further strengthened Ambuja post-acquisition, providing Ambuja with capital flexibility for accelerated 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 sector with a $10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim.
“This strategic move underlines the unwavering commitment to a robust capital management philosophy for 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 industry.
“The additional investment will strengthen the company's financial position and provide it with enhanced capabilities to pursue its ambitious growth plans and capitalize on emerging market opportunities,” the statement said.
Besides boosting capacity expansion, the cash infusion would also enable several strategic initiatives, including debottlenecking capital investments, to improve operational performance and bring efficiencies in resources and supply chain, Ambuja Cement said, adding that it will also drive innovation and product enhancement through advanced technology integration for enhanced service offerings to meet the growing needs of the sector, driven by the growth of the Indian economy.
“We are pleased to announce the completion of the Adani family's primary infusion of Rs 20,000 crore into Ambuja,” said Ajay Kapur, CEO of Ambuja Cements Ltd.
“This infusion of funds provides Ambuja with capital flexibility for rapid growth, capital management initiatives and best-in-class balance sheet strength. It not only demonstrates an unwavering belief in our vision and business model, but also strengthens our commitment to delivering sustainable, long-term value creation to our stakeholders, and this will drive us to set new benchmarks, accelerate our growth and to continue to deliver on operational excellence, business synergies and cost leadership.”
Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors on the transaction.
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