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Adani family injects ₹8,339 crore into Ambuja Cements, increases ownership to 70.3%

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Adani family infuses ₹8,339 crore in Ambuja Cements, raises stake to 70.3%

The Adani family has infused an additional ₹8,339 crore in Ambuja Cements, raising their stake in the major cement-producing firm to 70.3 per cent. This investment follows previous infusions of ₹5,000 crore on October 18, 2022, and ₹6,661 crore on March 28, 2024. With this latest infusion, the Adani family has fully subscribed to the warrants program in the company, contributing a total of ₹20,000 crore.

Ajay Kapur, Whole Time Director and CEO of Ambuja Cements Ltd, expressed excitement about the Adani family’s primary infusion, stating that it provides the company with capital flexibility for fast-tracked growth, capital management initiatives, and a strong balance sheet. Adani Group Chairperson Gautam Adani had previously acquired a controlling stake in Ambuja Cements Ltd. and ACC Ltd. for $10.5 billion in 2022, with financing from global banks and subsequent refinancing by Barclays Bank Plc, Deutsche Bank AG, and Standard Chartered Plc after facing criticism from US-based short-seller Hindenburg Research.

The infusion of funds comes as the Adani group aims to capture around one-fifth of the Indian cement market by FY28, positioning Adani Cement as a key player in the sector. The Indian cement industry is expected to grow at a CAGR of 7 to 8 per cent, according to the Adani Group, with significant growth opportunities in the Building Materials Industry.

As Prime Minister Narendra Modi prioritizes infrastructure development and real estate demand increases in India, the cement industry plays a crucial role in supporting economic growth. The Adani family’s continued investment in Ambuja Cements reflects their commitment to expanding their presence in the sector and capitalizing on growth opportunities.

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