Adanis invested Rs.8,000 crore into Ambuja Cements; Stakes in Shares hit 70% higher
Billionaire Gautam Adani and his family have taken a decision and invested in Ambuja Cenments worth Rs.8,000 crore additionally. This investment raised their stake in the company from 66.7% to 70.3%.
This infusion is the final tranche of the investment of Rs 20,000 crore that the family intended to make in Ambuja Cements after purchasing the company in 2022 from Switzerland’s Holcim. In 2022, Adanis acquired around 63.2% of Ambuja Cements.
In March of this year, they invested Rs.6,661 crore in the company, followed by Rs.5,000 crore in October 2022.
Ambuja Cements announced that Harmonia Trade and Investment, a member of the promoter group, had converted 26.5 crore rights into equity shares at Rs.416.9 per share. On BSE, the shares of Ambuja Cement had closed at Rs.617 per share.
“The further investment will strengthen the financial position of the Company, offering it improved capacity to pursue its goals of rapid expansion and capitalize on upcoming opportunities in the market,” said Ambuja Cement in a release.
“The financial infusion will help the Ambuja Cement plans to reach its target capacity of 140 million tonnes per year by 2028 from 78.9 million tonnes,” the release stated.
Furthermore, it will enable a variety of strategic activities, such as reducing expenditures to improve operational performance and increasing resource and supply chain efficiency.
The 2nd biggest manufacturer after Aditya Birla Group’s UltraTech Cement, Ambuja Cements also holds majority holdings in ACC and Sanghi Industries.
Ambuja Cements’ board sanctioned the allotment of 26.5 crore equity shares by converting warrants on Wednesday. Therefore, the Adani family’s share in Ambuja Cements increased by 3.6%, reaching 70.3%.
