Billionaire Gautam Adani's family invested an additional Rs 8,339 crore in Ambuja Cements, increasing its ownership to 70.3%, to boost the cement manufacturer's manufacturing capacity.
The Adani family had earlier invested Rs 5,000 crore in the company on October 18, 2022 and Rs 6,661 crore on March 28, 2024. The additional investment brings the company's projected infusion of Rs 20,000 crore to completion, according to a statement.
"The promoters of the company - Adani family - has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore," according to the report.
The recent infusion increases the Adani family's stake in Ambuja Cement by 3.6% to 70.3%.
In total, its stake in Ambuja Cement has increased from 63.2% to 70.3%.
The financial infusion will help Ambuja speed its expansion plans, which include nearly doubling its current capacity to 140 million tonnes per year by 2028, up from 76.1 million tonnes as of December 31.
"With this, promoters have further strengthened Ambuja post-acquisition, giving Ambuja capital flexibility for accelerated growth, capital management initiatives and best-in-class balance sheet strength to accomplish its various strategic initiatives," the statement said.
In 2022, the Adani group made its cement debut by purchasing Ambuja and ACC from Swiss conglomerate Holcim for USD 10.5 billion.
"This strategic step shows the Adani family's consistent dedication to a sound capital management strategy for the portfolio companies, and the latest investment demonstrates the Adani family's commitment to boosting the cement vertical's future prospects and potential.
"The additional investment will fortify the company's financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market," the company said in a statement.
Besides assisting with capacity expansion, the funds infusion would also enable various strategic initiatives, including debottlenecking capex, to enhance operational performance, as well as bringing efficiencies across resources and supply chain, Ambuja Cement said, adding that it shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector.
"We are thrilled to announce the completion of the Adani family's primary infusion of Rs 20,000 crore in Ambuja," said Ajay Kapur, CEO of Ambuja Cements Ltd.
"This infusion of money offers Ambuja with capital flexibility for rapid expansion, capital management initiatives, and world-class balance sheet strength. It not only demonstrates our unwavering belief in our vision and business model, but it also reinforces our commitment to providing long-term sustainable value to our stakeholders, which will propel us forward to set new benchmarks, accelerate our growth, and continue to deliver on operational excellence, business synergies, and cost leadership."
Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank participated as transaction advisors.
