Adani group invests Rs 8,339 crore in Ambuja Cements

After Adani acquired Holcim’s asset in India (Ambuja and ACC) in September 2022, Ambuja Cements announced an allotment of 47.74 crore warrants to Harmonia Trade and Investment Limited (Adani Family entity) at an issue price of Rs 418.87 per warrant.
Gautam Adani.
Gautam Adani. Express.

NEW DELHI: The Adani Family, the promoters of Ambuja Cements, has converted the final tranche of warrants issued for Ambuja Cements into equity by infusing Rs 8,339 crore. Adani family’s stake in Ambuja has now grown by 3.6% to 70.3%.

“The promoters of the Company, Adani family, has fully subscribed to the warrants program in the company by further infusing Rs 8,339 Cr thereby infusing a total amount of Rs 20,000 crore,” said Adani Group in a statement on Wednesday.

This fresh infusion follows the investment of Rs 5,000 crore on October 18, 2022, and Rs 6,661 crore on March 28, 2024, which was for part issuance of the shares. After Adani acquired Holcim’s asset in India (Ambuja and ACC) in September 2022, Ambuja Cements announced an allotment of 47.74 crore warrants to Harmonia Trade and Investment Limited (Adani Family entity) at an issue price of Rs 418.87 per warrant. Each warrant was convertible into one equity share, exercisable within 18 months from the date of allotment.

At the time of this announcement (18 October, 2022), the Adani Family had already subscribed 25% of the issue. It later exercised and converted 21.20 crore warrants into 21.20 equity shares of the Company on March 28. The remaining warrants were converted into equity on Wednesday.

Adani to BSE filing, the latest warrant conversion was approved at a premium of Rs 416.87 per share for an allotment of 26.54 crore equity shares of the company.

Ajay Kapur, Whole Time Director and CEO, Ambuja Cements, said, “This infusion of funds provides Ambuja, capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength.”

As per the Adani Group, the fund infusion will be instrumental in accomplishing the capacity of 140 million tonnes per annum (MTPA) by 2028 by the cement vertical. Ambuja Cements on Monday said it will acquire My Home Group’s cement grinding unit at Tuticorin (Tamil Nadu) for a total value of Rs 413.75 crore. My Home Group has a capacity of 1.5 MTPA.

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