Adani injects ₹8,339 Crore more in Ambuja Cements

18 Apr 2024 , 11:31 AM

The Adani family fully subscribed to Ambuja Cements’ warrants programme on Wednesday, injecting an extra ₹8,339 Crore to expand their shareholding in the firm by 3.6%.

Furthermore, the Adani family has funded a total of ₹20,000 Crore, with 70.3% ownership in the cement firm, according to an exchange filing.

The Adani family’s current investment followed an inflow of ₹5,000 Crore on October 18, 2022, and ₹6,661 Crore on March 28, 2024, which was used to partially issue the shares.

Standard Chartered Bank, MUFG Bank, Mizuho Bank, and Barclays Bank PLC served as transaction advisors.

The project aims to increase the cement vertical’s capacity to 140 million tonnes per year by 2028, according to the business.

Ambuja Cements stated in an exchange filing that this move will facilitate several strategic actions, such as optimizing capital expenditure to improve operational effectiveness and streamlining resource management and supply chain processes.

The additional cash will strengthen the cement company’s financial condition, allowing it to pursue expansion ambitions and capitalise on growing market possibilities.

Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, remarked that this injection of funds offers Ambuja the flexibility to accelerate growth, implement capital management strategies, and maintain a robust balance sheet. He emphasized that it reflects confidence in their vision and business model, underscoring their dedication to generating enduring value for stakeholders over the long term.

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