Adani Group Sells Around 2.8 % Stake Worth Rs 4,200 Crore in Ambuja Cements

The Adani Group on Friday sold nearly 2.8 per cent stake in its firm Ambuja Cements and raised up to Rs 4,200 crore in a pre-market block deal.  

According to a term sheet issued by the banker, Holderind Investments, was planning to offer 69.96 million shares for sale at a floor price of Rs 600 per share. Along with a 5 per cent discount on Thursday’s closing price of Rs 633. 

As per the company’s shareholding pattern data, the Gautam Adani-led conglomerate has a 70.33 per cent stake in Ambuja Cement as of June 2024. Holderind Investments Ltd, a subsidiary of the Adani group, holds 50.90 per cent stake. 

On Friday, shares of Ambuja Cements moved up by 3.20 points or 0.51 per cent to close at Rs 635 on the National Stock Exchange. 

The Adani Group forayed into the cement business in September 2022. They acquired Ambuja Cements and its subsidiary ACC Ltd from Switzerland’s Holcim Group for $6.4 billion.  

Additionally, as per a report in Business Standard, since October 2022, the conglomerate has infused nearly Rs 20,000 in Ambuja Cements. 

The acquisition of stakes in Ambuja Cements, along with ACC and Sanghi Industries, has made the Adani Group the second-largest cement producer in India. Presently, the Aditya Birla Group’s cement company, UltraTech Cement is the top cement player in the country. 

Further, to expand its market share in southern states, Ambuja acquired Penna Cement worth Rs 10,422 crore. Reportedly, adding Penna Cement to its basket of cement companies, Adani group will have a much stronger hold and will give a tough competition to UltraTech Cement. As per Jefferies note, the Penna acquisition will enable access to five bulk cement terminals at Kolkata, Gopalpur, Karaikal, Kochi and Colombo and ease sea transportation logistics for the group. 

“Through its cement business, Adani is carving out a new pillar of growth for the nation...Consequently, Adani has embarked upon the road to harnessing green energy in the cement industry by upholding the ethics of sustainability," said Group's website.