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TFP Bureau, Ahmedabad; April 17, 2024: Ambuja Cements Ltd (Ambuja), a leading cement and building materials company under the Adani portfolio, has announced a significant milestone in its growth strategy. The Adani family, promoters of the company, has completed the subscription of warrants by infusing an additional INR 8,339 crore, totaling an infusion of INR 20,000 crore. This move has increased the Adani family’s stake in Ambuja to 70.3%, reflecting their commitment and confidence in the company’s future prospects.
The recent investment follows earlier infusions of INR 5,000 crore on October 18, 2022, and INR 6,661 crore on March 28, 2024, for part issuance of shares. This strategic capital injection underscores a robust capital management philosophy aimed at boosting the cement vertical’s growth potential within the Adani Group’s diversified portfolio.
The funds raised will fuel Ambuja’s ambitious plans to nearly double its current capacity to 140 million tonnes per annum by 2028. Additionally, the capital will support strategic initiatives such as debottlenecking capex to enhance operational performance and efficiency across resources and supply chains. The investment will also drive innovation and product enhancement through advanced technology integration to meet the growing demands of India’s expanding economy.
Mr. Ajay Kapur, Whole Time Director and CEO of Ambuja Cements Ltd, expressed enthusiasm about the completion of the Adani family’s primary infusion, stating,
“This infusion provides Ambuja with capital flexibility for accelerated growth, capital management initiatives, and a robust balance sheet. It reinforces our commitment to delivering long-term sustainable value creation and will propel us towards setting new benchmarks in operational excellence, business synergies, and cost leadership.”
The transaction was advised by Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank.
About Ambuja Cements Limited:
Ambuja Cements Limited is a leading cement company in India and a member of the diversified Adani Group, known for its rapid and sustainable growth. Together with its subsidiaries ACC Ltd. and Sanghi Industries Ltd, Ambuja contributes to the Adani Group’s cement capacity of 78.9 MTPA across 18 integrated cement manufacturing plants and 19 cement grinding units nationwide. Ambuja has received accolades including ‘India’s Most Trusted Cement Brand’ by TRA Research and ‘Iconic Brands of India’ by The Economic Times. The company is recognized for its sustainable development projects and environment-friendly practices, catering to customer needs with innovative products that reduce carbon footprints. Ambuja Cements is committed to inclusive growth and sustainability, ranked among ‘India’s Top 50 companies contributing to inclusive growth’ by SKOCH and ‘India’s Top 50 Most Sustainable Companies’ Cross-Industry by BW Businessworld.
