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regular-article-logo Wednesday, 29 May 2024

Adani family raises stake in Ambuja Cements Ltd through conversion of 26.54 crore warrants into shares

Family has completed conversion of entire 47.7 crore convertible warrants that will result in promoter’s stake in Ambuja increasing to 70.3 per cent from 66.7 per cent

Our Special Correspondent Mumbai Published 18.04.24, 09:51 AM
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The Adani family has further raised their stake in Ambuja Cements Ltd (Ambuja) through the conversion of 26.54 crore warrants into shares that will see them infuse Rs 8,339 crore in the company.

The family has completed the conversion of the entire 47.7 crore convertible warrants that will result in the promoter’s stake in Ambuja increasing to 70.3 per cent from 66.7 per cent.

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The warrants were first issued to Harmonia Trade and Investment Limited (Harmonia), a member of the promoter group of the company, on October 18, 2022 by way of a preferential allotment on a private placement basis.

The warrants were issued by Ambuja Cements at an issue price of Rs 418.87 per warrant, out of which Rs 104.7175 or 25 per cent of the issue price was received at the time of allotment.

On March 28, 2024, Harmonia converted 21.2 crore warrants into equal number of shares as the promoter entity paid the balance subscription amount of Rs 314.15 per warrant. that resulted in the family’s stake in rising 3.6 per cent to 66.7 per cent.

In a regulatory filing on Wednesday, Ambuja Cements said Harmonia has now opted to convert the remaining 26.5 crore warrants into an equal number of equity shares.

Harmonia paid the balance subscription amount of Rs 314.15 per warrant.

Ambuja Cements said the Adani family has infused Rs 20,000 crore into the company — including Rs 5,000 crore in October 22 and Rs 6,661 crore on March 28.

According to the company, the latest investment testifies the commitment by the Adani family to boost future prospects and potential of cement vertical.

Ambuja added that the additional investment will fortify its financial position, providing it with enhanced capabilities to pursue an ambitious growth plans and capitalise on emerging opportunities in the market.

Ambuja expects that funds infusion will help it in accomplishing the annual capacity of 140 million tonnes by 2028 through the cement vertical.

It shall also enable various strategic initiatives including debottlenecking capex to enhance operational performance as well as bringing efficiencies across resources, and supply chain.

“This infusion of funds provides Ambuja flexibility for fast-track growth, capital management initiatives and best-in-class balance sheet strength,” Ajay Kapur, whole-time director and CEO, Ambuja Cements said.

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