Adani Group Strengthens Position in Ambuja Cements with Rs 8,339 Crore Investment, Boosting Stake to 70.3%

In a strategic move aimed at solidifying its presence in the cement industry, the Adani conglomerate, under the leadership of billionaire Gautam Adani, has significantly increased its investment in Ambuja Cements. With an infusion of an additional Rs 8,339 crore, the Adani family's stake in Ambuja Cements has surged to 70.3%, marking a substantial increase from their previous holdings. This substantial investment underscores the Adani family's confidence in the growth potential of Ambuja Cements and its commitment to fostering long-term value creation.

Previously, the Adani family had made substantial investments in Ambuja Cements, totaling Rs 5,000 crore on October 18, 2022, and Rs 6,661 crore on March 28, 2024. With this recent capital injection, their planned investment of Rs 20,000 crore in Ambuja Cements has been fulfilled, signaling a strong vote of confidence in the company's future prospects.

The company released a statement confirming the infusion of funds, stating, “The promoters of the company – Adani family – has fully subscribed to the warrants program in the company by further infusing Rs 8,339 crore, thereby infusing a total amount of Rs 20,000 crore.”

This infusion of capital has not only bolstered the Adani family's stake in Ambuja Cement by 3.6%, but it has also strengthened Ambuja Cement's financial position and provided the company with the necessary resources to accelerate its growth initiatives. The injected funds are expected to support Ambuja Cement in expanding its manufacturing capacity, with plans to nearly double its existing capacity to 140 million tonnes per annum by 2028 from 76.1 million tonnes as of December 31.

Ajay Kapur, CEO of Ambuja Cements Ltd., expressed confidence in the implications of this funding infusion, stating, “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 a testament to a steadfast belief in our vision and business model but also reinforces our commitment to delivering long-term sustainable value creation to our stakeholders.”

This latest investment reaffirms Adani Group's strategic vision and commitment to the cement sector, following its significant acquisition of Ambuja and ACC from Swiss giant Holcim in 2022 through a USD 10.5 billion deal. The infusion of capital underscores Adani Group's confidence in Ambuja Cement's growth trajectory and its dedication to fostering sustainable growth and value creation.

Adani Group's substantial investment in Ambuja Cements marks a pivotal moment in the company's journey, signaling its commitment to expansion and consolidation in the cement industry. With a strengthened financial position and the backing of the Adani family, Ambuja Cement is well-positioned to capitalize on growth opportunities and further enhance its market position in the years to come.