The Adani family, promoters of Ambuja Cements, has made its investment in the cement company grow by Rs 8,339 crore by an instrument called warrants issue. This move increases their stake in the company to 70.3 % with the total deal size being Rs 20,000 crore, according to the filing made on the exchange.
The company’s initial investment of Rs 5,000 crore in October 2022, and subsequently, on March 28, 2024, in the amount of Rs 6,661 crore for the purpose of share issuance is mentioned in the filing. Ambuja Cements agrees to the fact that such amount of fund is crucial in the aim to reach cement production capacity of 140 million tonnes per annum by 2028.
Ajay Kapur, who is a whole-time director and CEO of Ambuja Cements, welcomed the closing of Adani family's primary investment. He highlighted the impact of this cash injection on Ambuja, that it endows the company with capital flexibility that enables the company to grow faster and implement capital management initiatives that are robust, and a balance sheet that is stronger.
Kapur reassured the audience of their commitment to sustainable value for the stakeholders as they foresee this investment as the main factor for securing new milestones, improving operational efficiency, creating business synergies and keeping cost leadership.
