The promoters of Ambuja Cements have infused â¹5,000 crore in the company to increase their stake by 3.6 per cent to 66.7 per cent.
Adani family invested â¹5,000 crore by converting the warrants issued by the board of the company in October 2022. With this, the Adani family has increased their stake in the company by 3.6 per cent to 66.7 per cent, said Ambuja Cements in a statement on Thursday.
The strategic move underscores the promoters commitment to have robust capital management philosophy for the portfolio companies and boost future prospects of cement vertical, it added.
The additional investment will strengthen the companyâs financial position, providing it with enhanced capabilities to pursue its growth plans and capitalise on emerging opportunities in the market.
Overall, the promoters have infused â¹11,661 crore in Ambuja post acquisition from the Swiss-headquartered Holcim Group in September, 2022.
The fresh fund infusion will aid the company to achieve the targeted cement capacity of 140 million tonnes per annum by 2028. It will also fuel various strategic initiatives including debottlenecking capex to ensure scalability and bring efficiencies across resources and supply chain, said the company.
The investment will also drive innovation through adoption of advanced technology for better service offerings to tap the growing requirements of the sector.
Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said the infusion of funds provides capital flexibility for fast-tracking growth, capital management initiatives and improved balance sheet strength.
It reinforces the companyâs commitment to deliver long-term sustainable value creation to stakeholders and deliver on operational excellence, business synergies and cost leadership, he said.
Barclays Bank PLC, MUFG Bank and Standard Chartered Bank acted as advisor for the transaction.
On October 18, 2022, the finance committee of the company allotted 47.75 crore warrants at â¹419 as part of the private placement on preferential basis to promoter group company Harmonia Trade and Investment.
Ambuja Cements has more than doubled its consolidated net profit in the last three quarters of this fiscal to â¹3,212 crore against â¹1,405 crore logged in the same period last year. Its revenue was up five per cent at â¹24,266 crore (â¹23,071 crore).
With the focus on improving efficiency, its realisation was up at â¹1,103 per tonne against â¹606 in the same period last year.
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