Adani Raises Stake in Ambuja Cements to 70.3% with Rs 8,339 Crore Investment

Gautam Adani's family has increased their stake in Ambuja Cements to 70.3% through an investment of Rs 8,339 crore, completing a planned Rs 20,000 crore infusion aimed at doubling the company's production capacity.

The Aryavarth Express
Agency(New Delhi): Gautam Adani’s family has invested an additional Rs 8,339 crore in Ambuja Cements, boosting their stake to 70.3%, as announced by the company. This latest investment is part of a broader Rs 20,000 crore funding initiative aimed at expanding the cement manufacturer’s capabilities.

The Adani family, which began its foray into the cement industry with a massive USD 10.5 billion acquisition of Ambuja and ACC from Swiss conglomerate Holcim in 2022, previously invested Rs 5,000 crore in October 2022 and Rs 6,661 crore in March 2024. This final infusion of Rs 8,339 crore completes the planned investment, bringing their total shareholding in Ambuja Cement from 63.2% to 70.3%.

This strategic capital infusion is set to nearly double Ambuja Cement’s manufacturing capacity from its current 76.1 million tonnes per annum to 140 million tonnes by 2028. According to Ambuja, this move will not only accelerate the company’s growth but also enhance its financial stability, allowing for ambitious expansion plans and improvements in operational efficiency.

Ambuja Cements stated that the investment would support various strategic initiatives, including capital management and technological innovations to improve service offerings and operational performance. This initiative is aimed at strengthening the company’s position in the growing Indian cement market, driven by economic expansion and increasing construction activities.

Ajay Kapur, CEO of Ambuja Cements, expressed enthusiasm about the completion of this investment phase, emphasizing the enhanced capital flexibility and balance sheet strength it brings. The transaction was advised by notable financial institutions including Barclays Bank PLC, MUFG Bank, Mizuho Bank, and Standard Chartered Bank, underscoring the significant financial and strategic planning involved in this expansion effort.

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