Adani Family Boosts Ambuja Cements with Rs 6,661 Crore Infusion, Increases Stake

By siliconindia  |  Thursday, 28 March 2024, 12:53:36 PM IST

Adani Family Boosts Ambuja Cements with Rs 6,661 Crore Infusion, Increases Stake
In a significant move to bolster its position in the cement and building materials sector, the Adani family, promoters of Ambuja Cement, injected a staggering Rs 6,661 crore into the company, sending its stock soaring by nearly 2 percent. This infusion has propelled the Adani family's stake in Ambuja Cement to 66.7 percent, marking a substantial increase of 3.6 percent.
The investment, which follows a previous injection of Rs 5,000 crore into the company for warrant issuance approved in October 2022, underscores the Adani family's unwavering commitment to fortify Ambuja Cement's financial position and support its ambitious growth plans. Ambuja Cements affirmed that this strategic move aligns with its robust capital management philosophy for portfolio companies and signifies the Adani family's dedication to enhancing the future prospects and potential of the cement vertical.
According to a regulatory filing by Ambuja Cements, the investment is poised to drive innovation and product enhancement through advanced technology integration, thereby better serving the evolving needs of the sector. Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, emphasized that the infusion of funds provides the company with capital flexibility for accelerated growth, capital management initiatives, and a strengthened balance sheet.
Furthermore, Ambuja Cements highlighted that the fund infusion will play a crucial role in achieving the cement vertical's target capacity of 140 million tonnes per annum by 2028. This capital injection is expected to support strategic initiatives such as debottlenecking capex aimed at enhancing operational capabilities and ensuring scalability.

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