Adani Group Infuses Another Rs 8,339 Crore In Ambuja Cements, Raises Stake To 70.3%

Billionaire Gautam Adani's family infused an additional Rs 8,339 crore into Ambuja Cements, raising its stake in the company to 70.3%, to help the cement maker's manufacturing capacity.

The Adani family had previously 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 - Adani family - has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore," it said.

The latest infusion raises the Adani family stake in Ambuja Cement by 3.6% to 70.3%.

In all, its holding in Ambuja Cement has increased from 63.2% to 70.3%.

The fund infusion 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, promoters have further strengthened Ambuja post-acquisition, giving Ambuja capital flexibility for accelerated growth, capital management initiatives and best-in-class balance sheet strength to accomplish its various strategic initiatives," the statement said.

In 2022, the Adani group entered the cement sector with a $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 boosting 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.

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