Adani Family boosts investment in Ambuja Cements with Rs 6,661 crore equity infusion

Ambuja Cement in focus: Cement manufacturer Ambuja Cements on Thursday announced it has received a notable equity infusion from the Adani family. The infusion of Rs 6,661 crore marks a strategic move by the promoters to strengthen their commitment to the company's growth trajectory.

With the latest investment, the Adani family has increased its stake in Ambuja Cements by 3.6 per cent to 66.7 per cent. The move underscores the Adani family's unwavering commitment to robust capital management practices for its portfolio companies and highlights their confidence in the future prospects of the cement vertical.

The additional investment will bolster the cement manufacturer's financial position, providing it with enhanced capabilities to pursue ambitious growth plans and capitalise on emerging market opportunities. 

The funds infusion will play a crucial role in achieving the company's target capacity of 140 million tonnes per annum by 2028, along with driving various strategic initiatives such as debottlenecking capex and technological advancements.

Barclays Bank PLC, MUFG Bank, and Standard Chartered Bank acted as advisors for the transaction, further underlining the importance of this equity infusion in Ambuja Cement's growth journey, the company said in a statement.

"We are thrilled to announce the Adani family's decision to increase their stake in Ambuja. This infusion of funds provides Ambuja capital flexibility for fast-tracked growth, capital management initiatives and best-in-class balance sheet strength. It is not only the testament to steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders and this shall propel us towards setting new benchmarks accelerating our growth and continue to deliver on operational excellence, business synergies and cost leadership," said Ajay Kapur, Whole Time Director and CEO, Ambuja Cements.

Shares of Ambuja Cements were trading 1.24 per cent higher at Rs 609.15 per share, as of 11:30 am.