Adani family infuses Rs 6,661 crore into Ambuja Cement; increases stake to 66.7%

0 9


Gautam Adani’s family has infused Rs 6,661 crore into Ambuja Cement, thereby increasing its stake in the cement company to 66.7 per cent. This comes after the promoter infused Rs 5,000 crore earlier by exercising the warrants issuance approved by the board in October 2022. 

With this the family has increased its stake in the company by 3.6 per cent, as per a filing. The promoters have now infused Rs 11,661 crore into Ambuja post acquisition. 

Shares of Ambuja Cements gained 2.37 per cent intraday to Rs 616 against the previous close of Rs 601.70 on BSE. Market cap of the Adani Group firm rose to Rs 1.21 lakh crore.

“This infusion of funds provides Ambuja capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only the testament to steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders,” said Ajay Kapur, Whole Time Director and CEO, Ambuja Cement.

The company called it a strategic move to underscore the promoters’ unwavering commitment to have robust capital management for the portfolio companies. It also said that this was a commitment by the Adani family to boost future prospects and potential of the cement vertical. 

The investment will fortify the company’s financial position and allow it to pursue its growth plans and capitalise on emerging opportunities, it said. 

The funds will be used to achieve the capacity of 140 million tonnes per annum by 2028 by the cement vertical. It will also be utilised to fuel strategic initiatives such as debottlenecking capex to enhance operational capabilities to ensure scalability, as well as bringing efficiencies across resources, supply chain. Driving innovation, product enhancement are some of the other avenues that the fund will be utilised for.

Barclays Bank PLC, MUFG Bank and Standard Chartered Bank acted as advisors for the transaction.



Source link

Leave A Reply

Your email address will not be published.