Adani Family Injects Rs 8,339 Crore into Ambuja Cements, Raising Stake to 70.3 pc
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The Adani family, led by billionaire Gautam Adani, has injected an additional Rs 8,339 crore into Ambuja Cements, elevating its ownership in the company to 70.3 percent. This infusion aims to bolster the cement maker’s manufacturing capabilities. Previously, on October 18, 2022, the Adani family invested Rs 5,000 crore, followed by another infusion of Rs 6,661 crore on March 28, 2024. With this latest investment, they have fulfilled their planned infusion of Rs 20,000 crore, as stated by the company.
“The promoters, the Adani family, have fully subscribed to the warrants program of the company by injecting an additional Rs 8,339 crore, totaling Rs 20,000 crore,” the company announced.
This recent capital injection has increased the Adani family’s stake in Ambuja Cement by 3.6 percent to 70.3 percent. Overall, their holding in Ambuja Cement has risen from 63.2 percent to 70.3 percent. The funds injected will enable Ambuja to expedite its growth aspirations, aiming to nearly double its current capacity to 140 million tonnes per annum by 2028 from the existing 76.1 million tonnes as of December 31.
“With this infusion, the promoters have further fortified Ambuja post-acquisition, providing the company with capital flexibility to pursue accelerated growth, capital management initiatives, and a robust balance sheet to execute various strategic plans,” the statement concluded.
In 2022, the Adani group entered the cement sector with a USD 10.5 billion deal to buy Ambuja and ACC from Swiss giant Holcim. “This strategic move underscores unwavering commitment to have a robust capital management philosophy for the portfolio companies, and the latest investment testifies the commitment by the Adani family to boost future prospects and potential of cement vertical.
“The additional investment will fortify the company’s financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market,” the statement said.
Besides helping in capacity expansion, the funds infusion would also enable various strategic initiatives, including debottlenecking capex, to enhance operational performance, as well as bringing efficiencies across resources and supply chain, Ambuja Cement said, adding that it 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.
“We are thrilled to announce the completion of the Adani family’s primary infusion of Rs 20,000 crore in Ambuja,” said Ajay Kapur, CEO of 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 a testament to a 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 continuing to deliver on operational excellence, business synergies and cost leadership.” Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors for the transaction.
