MASSIVE Rs 20k cr capital infusion! Adani Family completes Ambuja Warrant Subscription; stake increased to 70.3%

April 18,2024

Ambuja Cements Ltd (Ambuja), the cement and building materials flagship company under Adani portfolio, is pleased to announce a significant development in its growth trajectory. The promoters of the Company - Adani family has fully subscribed to the warrants program in the Company by further infusing INR 8,339 Cr thereby infusing total amount of INR 20,000 Cr. Adani family have increased their stake in the Company by further 3.6% to 70.3%. This follows, the investment of INR 5,000 Cr on 18 October 2022 and INR 6,661 Cr on 28 Mar 2024, which was for part issuance of the shares.

Strategic move

"This strategic move underscores unwavering commitment to have robust capital management philosophy for the portfolio companies and the latest investment testifies the commitment by Adani family to boost future prospects and potential of cement vertical. The additional investment will fortify the Company's financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalize on emerging opportunities in the market," an official statement said.

Funds infusion will be instrumental

The funds infusion will be instrumental to accomplish the capacity of 140 million tonnes per annum by 2028 by the cement vertical. Further, it shall also enable various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain. This shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy.

Infusion of Rs 20k cr in Ambuja

"We are thrilled to announce completion of Adani family's primary infusion of INR 20,000 Cr in Ambuja," said Ajay Kapur, Whole Time Director and CEO, Ambuja Cements Ltd. "This infusion of funds provides Ambuja, capital flexibility for fasttracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only 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 and this shall propel us towards setting new benchmarks accelerating our growth and continue to deliver on operational excellence, business synergies and cost leadership."

Advisors to the transaction

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