Adani Group-owned Ambuja Cements on Wednesday announced that its promoters, Adani family has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore thereby infusing total amount of Rs 20,000 crore.
The Adani family has thus increased their stake in Ambuja Cements by further 3.6 per cent to 70.3 per cent. This follows the investment of Rs 5,000 crore on 18 October 2022 and Rs 6,661 crore on 28 Mar 2024, which was for part issuance of the shares.
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, it said in a regulatory filing.
Ambuja Cements said that the funds infusion will help accomplish the capacity of 140 million tonnes per annum by 2028 by the cement vertical. Further, it shall also enable various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain. It further added that the infusion 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 completion of Adani family’s primary infusion of Rs 20,000 crore in Ambuja,” said 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 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,” he added.
Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisors for the transaction.