The Adani family, known for their significant presence in various industries, including Ambuja Cement, has injected a substantial sum of ₹6,661 crore into the cement and building materials company. This move has not only elevated Ambuja Cement’s stock by nearly 2 percent but has also propelled the Adani family’s stake in the company to 66.7 percent, marking a 3.6 percent increase. The infusion follows a previous investment of ₹5,000 crore made by the Adani family towards the company’s warrants issuance, sanctioned by the board in October 2022.
In response to this strategic investment, Ambuja Cements issued a statement affirming its positive impact on the company’s financial robustness and its alignment with ambitious growth plans. The company emphasized its commitment to a robust capital management philosophy for its portfolio companies. Ambuja Cements stated, “This strategic move underscores unwavering commitment to have robust capital management philosophy for the portfolio companies and the latest investment testifies the commitment by Adani family to boost future prospects and potential of cement vertical,” in a regulatory filing.
Furthermore, Ambuja Cements highlighted the investment’s role in fostering innovation and enhancing product offerings through advanced technology integration. Ajay Kapur, Whole Time Director and CEO of Ambuja Cements, hailed the infusion of funds as a means to provide capital flexibility for accelerated growth, capital management initiatives, and strengthening the company’s balance sheet.
The company outlined its vision for achieving a cement capacity of 140 million tonnes per annum by 2028, citing the crucial role of the fund infusion in realizing this target. Ambuja Cements emphasized the significance of the investment in supporting strategic initiatives such as debottlenecking capex to enhance operational capabilities and ensure scalability.
The Adani family’s substantial investment in Ambuja Cement reflects their confidence in the company’s potential and their dedication to bolstering its growth trajectory. With a focus on capital management and strategic innovation, Ambuja Cement aims to solidify its position in the cement industry and cater to the evolving needs of the sector.
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