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Adani Family Finished Warrant Subscription: Infusion of ₹20,000 Crore

22 April 20243 mins read by Angel One
Ambuja Cement Ltd's promoters increased their holdings to 70.3%. This puts Ambuja on a growth trajectory to double its capacity to 140 MTPA by 2028.
Adani Family Finished Warrant Subscription: Infusion of ₹20,000 Crore
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On April 17, 2024, the flagship company of Adani Portfolio, Ambuja Cements Ltd (Ambuja), announced that the promoters of the company – the Adani family have fully subscribed to the warrants program in the company with further capital infusion of ₹8,339 crore. This infusion took the capital added by the Adani family to ₹20,000 crore. As a result, the promoters, the Adani family, have increased their stake in Ambuja Cements from 3.6% to 70.3%. This follows the investment of ₹5,000 crore on 18 October 2022 and ₹6,661 crore on 28 Mar 2024, which was for part issuance of the shares.

This strategic move fuels the unwavering commitment to a robust capital management philosophy for the portfolio companies. The latest investment testifies to the Adani family’s commitment to boosting the cement vertical’s future prospects and potential. The additional investment will fortify the Company’s financial position, providing it with enhanced capabilities to pursue its ambitious growth plans and capitalise on emerging opportunities in the market.

The cement vertical will need the fund’s investment to reach its target of 140 million tonnes annually by 2028. Additionally, it will make it possible to carry out a number of strategic initiatives, such as debottlenecking capital expenditures, which will improve operational performance and introduce supply chain and resource efficiency. Additionally, integrating cutting-edge technology into products will promote innovation and product refinement and enhance service offerings to meet the sector’s expanding needs, which are being driven by the expansion of the Indian economy.

“We are thrilled to announce the completion of the Adani family’s primary infusion of INR 20,000 Cr in Ambuja. This infusion of funds provides Ambuja with capital flexibility for fast-tracked growth, capital management initiatives, and strength in the best-in-class balance sheet,” said Mr Ajay Kapur, Whole Time Director and CEO of Ambuja Cements Ltd.

He further added, “It is not only a testament to a 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 continuing to deliver on operational excellence, business synergies and cost leadership.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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