The promoter family of Adani Group has invested an additional Rs 8,339 crore ($1.1 billion) into Ambuja Cements, bringing their total investment to Rs 20,000 crore ($2.7 billion). The investment will be used to expand Ambuja Cements’ annual production capacity to 140 million tonnes by 2028, doubling its current capacity.
Promoters have increased their stake in Ambuja to 70.3% from 63.2%, marking a further consolidation of the company post-acquisition, and paving the way for accelerated growth and realization of strategic objectives. The capital increase is through the issuance of company warrants. This follows earlier investments of Rs 5,000 crore in 2022 and Rs 6,661 crore in March this year, underlining the promoters’ commitment to the company’s growth.
The funds raised will be used for capacity augmentation and for debottlenecking production, which will enhance efficiencies across resources and supply chain in the cement vertical. This investment aims to bolster future prospects and work on emerging opportunities. Barclays Bank PLC, MUFG Bank, Mizuho Bank and Standard Chartered Bank were advisors for the transaction.
Ambuja Cements has announced the purchase of a 1.5 million tonnes per annum (mtpa) cement grinding unit in Tuticorin from My Home Group, bringing the total cement capacity of the Adani Group to around 79 million tonnes. This move follows the Adani Group’s significant entry into the cement sector in 2022, when it bought Ambuja and ACC from Swiss giant Holcim.
