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The Adani promoter family has infused Rs 8,339 crore more into Ambuja Cements, taking the total fund infusion to Rs 20,000 crore. The funds will be used by the cement company to double annual production capacity to 140 million tonne (MT) by 2028.
With this, promoters have further strengthened Ambuja post acquisition, by extending the flexibility for accelerated growth, and initiatives to accomplish its various strategic goals. The capital is via warrants issued by the company and raising promoter stake to 70.3 percent from 63.2 percent. The earlier investment of Rs 5,000 crore was made in 2022 and Rs 6,661 crore in March this year.
Apart from the capacity augmentation, the funds will also be used to debottleneck production which would bring in efficiencies across resources and supply chain. This investment will help boost future prospects and potential of the cement vertical, with enhanced capabilities and work on emerging opportunities. Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank acted as advisor for the transaction.
Ambuja Cements, this week, announced buying a 1.5-mtpa cement grinding unit in Tuticorin from My Home Group. The total cement capacity of the Adani Group is around 79 MT now. In 2022, the Adani Group made a significant move into the cement sector with the acquisition of Ambuja and ACC from the Swiss major Holcim. |
