Adani Group Injects ₹8,339 Crore into Cement Arm

The Adani promoter family has further cemented its commitment to Ambuja Cements by injecting an additional ₹8,339 crore into the company. This move comes as they fully subscribe to the warrants issued by Ambuja Cements, effectively raising the promoter stake from 63.2 percent to 70.3 percent.

With this latest investment, the total fund infusion into Ambuja Cements reaches a substantial ₹20,000 crore. This includes earlier investments of ₹5,000 crore in 2022 and ₹6,661 crore in March of the current year.

The injected funds are earmarked for ambitious expansion plans, aiming to double the annual production capacity of Ambuja Cements to 140 million tonnes (mt) by 2028. This infusion not only fortifies Ambuja's position post-acquisition but also provides the necessary capital flexibility to fuel accelerated growth and manage capital effectively. It also enhances the company's balance sheet strength, enabling it to undertake various strategic initiatives, as stated in a company release.

In addition to capacity expansion, the funds will be utilized to streamline production processes, enhance operational performance, and optimize resources and supply chain efficiency.

Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank played advisory roles in facilitating the transaction.

Ambuja Cements is pursuing growth both organically and inorganically. Just recently, it announced the acquisition of a 1.5-mtpa cement grinding unit in Tuticorin for ₹414 crore from the My Home Group. With this latest development, the total cement capacity under the Adani Group's umbrella reaches approximately 79 mt.

HBL