Adani Family infuse INR 6,661 Crore equity in Ambuja Cement, increases stake in the Company to 66.7%

Ambuja Cements Ltd (Ambuja), the cement and building materials flagship company under Adani portfolio, has announced a significant development in its growth trajectory. The promoters of the Company - Adani family has concluded substantial infusion of funds in the Company. Adani family has infused INR 6,661 Cr. This follows the infusion of INR 5,000 Cr infused by promoter into the Company for exercising the warrants issuance approved by the board of the Company in October 2022. With this, Adani family have increased their stake in the Company by 3.6% to attain 66.7% holding.

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 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 enhancing conclusively to accomplish the capacity of 140 million tonnes per annum by 2028 by the cement vertical. This shall also be instrumental fuelling various strategic initiatives including undertaking debottlenecking capex to enhance operational capabilities to ensure scalability, 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.

"We are thrilled to announce Adani family's decision to increase their stake in Ambuja," said Mr. 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 the 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 and Standard Chartered Bank acted as advisor for the transaction.

Shares of Ambuja Cements Limited was last trading in BSE at Rs. 612.30 as compared to the previous close of Rs. 601.70. The total number of shares traded during the day was 249246 in over 8067 trades.

The stock hit an intraday high of Rs. 617.00 and intraday low of 602.30. The net turnover during the day was Rs. 152547717.00.

Source : Equity Bulls

Keywords

AmbujaCements INE079A01024 FundInfusion AdaniFamily StakeIncrease