Adanis invest additional $800 million in Ambuja Cement

The cement and building materials company under Adani Group’s portfolio, Ambuja Cement, received a shot in the arm after the Adani family announced an additional investment of ₹6,661 crores or $798.65 million.

With this investment, the promoters have increased their stake in the company by 3.6% to attain 66.7% holding.

This follows the infusion of ₹5,000 crore ($599.5 million) infused by the Adani family into the company for exercising the warrants issuance approved by the board of the Company in October 2022.

The Adani Group acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion in September 2022. Later, it acquired an additional 26% stake from public shareholders through a ₹31,000 crore ($3.72 billion) open offer.

Amubija Cements informed the exchange in filing on Thursday that with this additional investment, it plans to almost double its cement manufacturing capacity by 2028.

The funds infusion will help Ambuja raise its capacity of 140 million tons per annum by 2028 from the current 77.4 million tons per annum, and the investment will also fortify the company’s financial position.

It will offer it enhanced capabilities to pursue its ambitious growth plans and capitalize on emerging opportunities in the market.

Ajay Kapur, Director and CEO of Ambuja Cements, said, “This infusion of funds provides Ambuja capital flexibility for fast-tracked growth, capital management initiatives, and best-in-class balance sheet strength.”

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

Ambuja Cements has two subsidiaries, ACC Ltd. and Sanghi Industries Ltd. It manufactures 77.4 million tons of cement at 18 integrated cement manufacturing plants and 18 grinding units nationwide.

($1=₹83.40)