29 March 2024 – The Adani Group, led by billionaire Gautam Adani, has infused Rs 6,661 crore into Ambuja Cements, raising its stake by 3.6% to 66.7%, signaling a significant investment in the cement major.
The News:
Harmonia Trade & Investment, an Adani Group entity, converted 21.2 crore warrants into shares at Rs 314 per share, enhancing the group’s position in Ambuja Cements. In a strong market, Ambuja Cements stock closed at Rs 612 on the BSE, up 1.8% on the day, reflecting investor confidence in the company’s growth trajectory.
The investment aligns with Ambuja Cements’ ambitious growth plans, including increasing capacity to 140 million tonnes per annum by 2028, strengthening its position as one of the country’s leading cement players. Ambuja Cements’ board approved the allotment of 21.2 crore equity shares through warrant conversion, providing the company with capital flexibility for accelerated growth and strategic initiatives.
CEO’s Statement:
Ambuja Cements CEO Ajay Kapur expressed confidence in the investment, highlighting its alignment with the company’s vision and commitment to delivering sustainable value to stakeholders. With subsidiaries like ACC and recent acquisitions like Sanghi Industries, Ambuja Cements boasts a strong operational capacity of 77.4 million tonnes annually from its integrated manufacturing plants and grinding units across India.
The Adani Group’s acquisition of controlling stakes in Ambuja Cements from Holcim and subsequent open offers demonstrate its strategic focus on expanding its presence in the cement sector and driving long-term value creation.
Conclusion:
The Adani Group’s significant investment in Ambuja Cements underscores its confidence in the company’s growth potential and strategic direction. The infusion of capital will support Ambuja Cements’ expansion plans and contribute to its continued success in the cement industry.
