Adani Family infuse ₹8,339 crore in Ambuja Cement, increase stake to 70.3%

Adani Family has infused an additional ₹8,339 crore in Ambuja Cements through warrants subscription, raising their stake by further 3.6% to 70.3%, Ambuja Cement revealed in an exchange filing.

So far, the Adani Family, which is the promoter of the company has infused ₹20,000 crore in Ambuja Cements. This development follows a prior investment of ₹5,000 crore on 18 October 2022 and ₹6,661 crore on 28 Mar 2024, which was part of the issuance of shares.

The infused funds will help with “various strategic initiatives including debottlenecking capex to enhance operational performance, as well as bringing efficiencies across resources, supply chain.” and support the company's ambitious plan of achieving “capacity of 140 million tonnes per annum by 2028 by the cement vertical.”

Earlier during the week, Adani Cement disclosed its plans to increase its market share from 14% to 20% by FY28 through an internal accruals-driven capex program. The company expects demand from the infrastructure segment to grow from 24% - 25% in FY23 to 25% - 29% in FY28, as revealed by an investor presentation filed by Ambuja Cement on April 15, Monday. Read More

Adani Cement expects demand in the Indian cement industry to grow by 8% -9% in the next 5 years, backed by the infrastructure segment, which will see tailwinds from the development of new economic corridors, a strong banking industry, and the government’s National Infrastructure Pipeline.

Shares of Ambuja Cement were trading 1.72% higher at ₹628.15 on NSE. They closed at ₹617.55 in the previous trading session. Ambuja Cements had earlier said it remains debt-free with a net worth of ₹43,000 crore. It has cash and cash equivalents of ₹8,591 crore as of December 31, 2024.

Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank acted as financial advisors in the transaction.