Ambuja Cements Raises INR 5,000 Crore Through Adani's Family Business Ambuja Cement, now part of Adani Cement, has issued warrants worth INR 47.74 crore to the Adani family business Harmonia Trade and Investment
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Ambuja Cements Ltd issued warrants worth INR 47.74 crore to the Adani family business Harmonia Trade and Investment and raised INR 5,000 crore on Tuesday. Ambuja Cement, now part of Adani Cement, has issued warrants worth INR 47.74 crore at INR 418.87, according to a regulatory filing by the company.
"We would like to inform you that, the Finance Committee of Directors of the company, at its meeting held on October 18 approved allotment of the warrants of the company by way of private placement on a preferential issue basis to Harmonia Trade and Investment," said Ambuja Cements in its regulatory filing,
According to reports, the cement player allotted 477,478,249 warrants to Harmonia at an issue price of INR 418.87 apiece having a face value of INR 2 each. The paid-up value of warrants is INR 104.72 apiece which is a minimum of 25 per cent of the issued price.
On September 16, Gautam Adani-backed Group emerged as the second largest cement player by completing the acquisition of Ambuja Cements and ACC for $6.5 billion. Post the transaction, Adani holds 63.15 per cent in Ambuja Cements and 56.69 per cent in ACC.
The board of Ambuja Cements approved an infusion of INR 20,000 crore into Ambuja by way of preferential allotment of warrants. "This will equip Ambuja to capture the growth in the market. The actions will significantly accelerate value creation for all stakeholders, in line with the Adani Group's business philosophy," said a statement.
