The family of Gautam Adani has invested Rs 6,661 crore in Ambuja Cement, bringing their ownership interest to 66.7%. This follows the promoter's earlier infusion of Rs 5,000 crore through the exercise of warrants that the board had approved in October 2022.
According to a document, this has raised the family's ownership position in the business by 3.6%. Since the takeover, the promoters have invested a total of Rs 11,661 crore in Ambuja.
Ambuja Cements' stock increased 2.37 percent during the day to settle at Rs. 616 on the BSE, up from Rs. 601.70 the previous day. The Adani Group company's market value increased to Rs 1.21 lakh crore.
"Ambuja now has the capital flexibility it needs for capital management initiatives, fast-tracked expansion, and best-in-class balance sheet strength thanks to this funding infusion. Ajay Kapur, Whole Time Director and CEO of Ambuja Cement, stated, "It is not only evidence of our unwavering belief in our vision and business model, but it also strengthens our commitment to delivering long-term sustainable value creation to our stakeholders."
The company described it as a calculated effort to highlight the promoters' steadfast dedication to strong capital management for the portfolio companies. It further stated that the Adani family has pledged to enhance the cement vertical's capabilities and future possibilities.
The company stated that the investment will strengthen its financial position, enable it to pursue its growth objectives, and help it take advantage of new opportunities.
The money will be utilized to help the cement vertical reach its 2028 goal of 140 million tonnes annually. Additionally, it will be used to support strategic efforts including supply chain and resource efficiency improvements, as well as debottlenecking capital expenditures to improve operating capabilities and ensure scalability. Among the potential uses for the capital are product enhancement and driving innovation.
The transaction's consultants were Barclays Bank PLC, MUFG Bank, and Standard Chartered Bank.
