Adani injects Rs. 8,339 crore in Ambuja Cements, to boost ownership to 70.3%

The Adani family had made an investment of Rs 5,000 crore in the company on October 18, 2022, followed by another investment of Rs 6,661 crore on March 28, 2024. The company announced that with the most recent investment, the planned infusion of Rs 20,000 crore has been successfully completed.

The company statement added, “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."

The most recent investment has increased the Adani family's ownership in Ambuja Cement by 3.6% bringing their total stake to 70.3%. Adani's holding in Ambuja Cement has increased from 63.2% to 70.3%.

The capital injection will assist Ambuja in expediting its expansion goals to nearly double its current capacity to 140 million tonnes per year by 2028 from 76.1 million tonnes as of December 31.

The statement quoted,"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 Adani group made a significant move in 2022 by acquiring Ambuja and ACC from Swiss giant Holcim for a total of $10.5 billion, marking their entry into the cement sector.

The most recent investment demonstrates the dedication of the Adani family to enhance the future opportunities and potential of the cement vertical.

In addition to supporting capacity growth, the injection of funds will also facilitate a range of strategic efforts, such as streamlining capital expenditures, to improve operational efficiency, while also optimizing resources and supply chain processes.

Ajay Kapur, CEO of Ambuja Cements Ltd. said,"We are thrilled to announce the completion of the Adani family's primary infusion of Rs 20,000 crore in Ambuja."

The funding injection will provide Ambuja with the financial flexibility needed for rapid growth, effective capital management, and a solid balance sheet. This demonstrates confidence in their vision and business model, as well as commitment to creating lasting value for stakeholders. It will drive us to set new standards, accelerate growth, and maintain focus on operational excellence, business synergies, and cost efficiency.