Adani family infuses additional Rs 8,339 crore in Ambuja; its stake rises to 70.3%

AHMEDABAD: Adani Family, the promoters of Ambuja Cements Limited, on Wednesday announced that it will infuse an additional Rs 8,339 crore into Ambuja Cements Limited, by fully subscribing to the warrants programme in the company. This will take the promoter’s total infusion of Adani Family to Rs 20,000 crore into Ambuja Cements, the cement and building material company of the ports-to-power conglomerate. Side by side, Adani Group’s stake in Ambuja will also increase by an additional 3.6% to 70.3%, the company said in its stock exchange filing.

The announcement followed an investment of Rs 5,000 crore in October 2022 and Rs 6,661 crore in March this year, which was for part issuance of the shares. This funding is part of Ambuja's strategy to double its production capacity to 140 million tonne per annum (MTPA) by 2028.

Ambuja Cements recently announced its plans to acquire My Home Group's 1.5 MTPA cement grinding unit in Tuticorin, Tamil Nadu for Rs 413.75 crore.

The additional capital from Adani Family will enable Ambuja Cements to fast-track its expansion plans. These include operational debottlenecking, supply chain efficiency improvements, and technology integration for product enhancement.

Ajay Kapur, whole time director & CEO, Ambuja Cements, said, “This investment strengthens Ambuja's balance sheet and accelerates growth. The funds will aid in setting new industry benchmarks and maintaining cost leadership.”

The transaction was advised by Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank.