Ambuja Cements Ltd on Saturday said it has received shareholders’ approval for all proposals in its EGM, including a resolution to raise Rs 20,000 crore from an Adani group firm and appointment of Gautam Adani and others on the board of the company.
The Extraordinary General Meeting (EGM) has passed the special resolution proposing to raise Rs 20,000 crore by issuing securities on a preferential basis to Harmonia Trade and Investment Ltd, an Adani group entity, with 91.37 per cent votes, Ambuja Cements said in a regulatory update.
Resolutions to appoint Adani Group Chairman Gautam Adani, his son Karan Adani and two directors and four independent directors on the board of Ambuja Cements were also approved by the shareholders.
The proposal for the appointment of Gautam Adani was approved with 96.51 per cent of the valid votes cast in favour, while the appointment of Karan Adani received 99.96 per cent votes, as per the scrutiniser’s report on the voting results.
The shareholder also approved all special resolutions related to the appointment of independent directors, the amendment to the Articles of Association (AoA) and the change of its registered office to Ahmedabad-based Adani Corporate House.
Gautam Adani, who is now the chairman of the board of Ambuja Cements after its takeover by the Adani group, was not present at the EGM. His son Karan Adani chaired the EGM in his absence.
Also Read: IiAS asks Ambuja Cements’ shareholders to vote against fund-raising plans
Ambuja Cements, which also owns 50.05 per cent of ACC Ltd, had called an EGM of the shareholders on Saturday.
Earlier this week, institutional investor advisory firm IiAS had recommended the shareholders of Ambuja Cements to vote against the proposal to raise Rs 20,000 crore from the Adani family firm.
It had also advised shareholders to vote against the appointment of Ameet Desai and Purvi Sheth as independent directors of the company.
Ambuja Cements had sought shareholders’ approval on 12 resolutions, which included preferential allotment of 47.74 crore warrants at a price band of Rs 418.87 to Harmonia Trade and Investment Ltd, totalling Rs 20,001 crore, in one or more tranches.
Last month, the Adani group announced the completion of the acquisition of Ambuja Cements and ACC for a total consideration of USD 6.5 billion (about Rs 53,800 crore), which includes the buyout of Swiss major Holcim’s stake in the two firms and subsequent open offers to minority shareholders.
Days after the acquisition, the Adani group pledged its entire stake in Ambuja Cements and ACC Ltd worth USD 13 billion (around Rs 1.07 lakh crore) to the Hong Kong branch of Deutsche Bank.
Adani acquired Ambuja Cement and ACC through Mauritius-based SPV Endeavour Trade and Investment Limited (ETIL), which is owned by Xcent Trade and Investment Ltd (XTIL).