Adani family infuses Rs 8,339 cr in Ambuja Cements, raising stake to 70.3%

This brings the total investment by the Adani family in the country's second-largest listed cement manufacturer to Rs 20,000 crore, further raising their ownership stake by 3.6% to approximately 70.3%.

This recent capital injection follows a previous investment of Rs 5,000 crore into Ambuja on October 18, 2022, and another of Rs 6,661 crore on March 28, 2024, which was directed towards a partial issuance of shares.

The Adani group had acquired Ambuja Cements in 2022.

"This infusion of funds provides Ambuja, capital flexibility for fasttracked growth, capital management initiatives and best-in-class balance sheet strength," said Ajay Kapur, whole time director and CEO, Ambuja Cements.

“It is not only testament to steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders and this shall propel us towards setting new benchmarks ACCelerating our growth and continue to deliver on operational excellence, business synergies and cost leadership," added Kapur.

According to the group, the latest fund infusion is in line with their commitment to have robust capital management and reflects the promoter’s objective to boost future prospects and potential of cement vertical.

“The additional investment will fortify the company's financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalize on emerging opportunities in the market," said the statement.

The company stated that the recent injection of funds will enable the group in reaching its goal of achieving a capacity of 140 million tonnes per annum in the cement business by 2028.

This investment will facilitate several strategic initiatives, such as debottlenecking capital expenditure aimed at improving operational performance, and implementing efficiencies across resources and the supply chain.

“This shall also drive innovation and product enhancement through advanced technology integration for better service offerings to tap the growing requirements of the sector driven by the growth in the Indian economy," added the statement.

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

Ambuja Cements, along with its subsidiaries ACC Ltd. and Sanghi Industries Ltd., jointly contributes to the Adani Group's cement capacity, amounting to 77.4 million tonnes.

This capacity is spread across 18 integrated cement manufacturing plants and 18 cement grinding units located throughout the country.