Adani Family Infuses ₹6,661 Crore into Ambuja Cements, Boosts Stake to 66.7%

28 Mar 2024 , 02:05 PM

The Adani family, promoters of Ambuja Cements, infused ₹6,661 Crore into the company, resulting in a nearly 2% increase in the stock price.

This investment raised the Adani family’s stake in Ambuja Cements by 3.6% to 66.7%, following a previous infusion of ₹5,000 Crore via warrants in October 2022.

With a total infusion of ₹11,661 Crore, the Adani family has significantly increased their investment in Ambuja since acquiring control from Holcim.

Ambuja Cements has announced a strategic investment aimed at bolstering the company’s financial standing and aligning with its ambitious growth strategies. In a regulatory filing, Ambuja Cements expressed its firm commitment to maintaining a robust capital management philosophy for its portfolio companies, with this investment serving as a testament to the Adani family’s dedication to enhancing the future prospects and potential of the cement vertical.

The company emphasized that this move will not only reinforce its financial position but also drive innovation and product enhancements through the integration of advanced technologies, thereby better catering to the evolving needs of the sector.

Ajay Kapur, the Whole Time Director and CEO of Ambuja Cements, highlighted the significance of this capital infusion in providing the company with the flexibility needed for accelerated growth, capital management initiatives, and the cultivation of a top-tier balance sheet.

Furthermore, Ambuja Cements stated that this fund infusion will play a pivotal role in realizing the cement vertical’s target capacity of 140 million tonnes per annum by 2028. The company emphasized the importance of this investment in supporting strategic initiatives such as debottlenecking capex, which aims to enhance operational capabilities and ensure scalability for sustainable growth.

The investment will also support strategic initiatives such as debottlenecking capex to enhance operational capabilities, and improve efficiencies in resources and supply chain, according to Ambuja Cements’ regulatory filing.

Furthermore, the additional investment will strengthen the company’s financial position, enabling it to pursue ambitious growth plans and capitalize on market opportunities.

Ambuja Cements emphasized that the investment will drive innovation and product enhancement through advanced technology integration, catering to the evolving needs of the sector.

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