Ambuja Cements hits fresh high following Adani Group's Rs20,000 crore infusion plan

19 Sept 2022 , 11:25 AM

Ambuja Cements' counter hit a new 52-week high in today’s trade at Rs568, following the reports circulating Adani Group’s plan to infuse Rs20,000 crore more in the company.

At around 11.10 AM, Ambuja Cement was trading 7.99% higher at Rs558, against the previous close of Rs516.70 on NSE.

On September 15, 2022, Ambuja Cement's new board authorised an Rs20,000 crore investment into the firm via a preferential issue of Rs477.5 crore convertible warrants at a price of Rs419 to Harmonia Trade and Investment (promoter entity).

According to the corporation, the warrants issued can be exercised and converted into equity shares in one or more tranches within 18 months.

The new promoters have stated clearly that they intend to double the group's cement capacity in the next five years and become the largest and most efficient cement firm by 2030.

The group's exposure to energy and logistics, according to management, will help them improve cost dynamics and acquire supply chain efficiency.

Promoters' commitment to expanding the cement sector has been bolstered by their announcement of a financial infusion into this business.

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