Home Business Ambuja Cements raises Rs 5,000 crore through Adani's family firm

Ambuja Cements raises Rs 5,000 crore through Adani’s family firm

Ambuja Cements allots 47.74 crore warrants to Adani family firm

New Delhi:

Ambuja Cements Ltd on Tuesday said it has issued 47.74 crore warrants and raised Rs 5,000 crore to Adani family firm Harmonia Trade and Investment.

Ambuja Cement, now part of Adani Cement, has issued 47.74 crore warrants at a price band of Rs 418.87, a regulatory filing by the company said.

As per the terms and conditions, the family of the Adani Group has contributed Rs 5,000.15 crore, which is “25 per cent of the limited issue value”.

“…we would like to inform you that, the Finance Committee of the Directors of the Company in its meeting held today has approved the allotment of warrants of the Company through private placement on preferential issue basis, to Harmonia Trade and Investment Limited,” Ambuja said. .

It added that the face value of warrants issued on preferential issue basis to an Adani Group firm is Rs 2.

On October 8, at an EGM of the company, Ambuja Cements shareholders approved proposals, including appointment of Gautam Adani and directors on the company’s board and a proposal to raise Rs 20,000 crore from the Adani family firm by issuing warrants.

At the EGM, Ambuja Cements has sought approval for preferential allotment of 47.74 crore warrants to Harmonia Trade and Investment Ltd at a price band of Rs 418.87 crore in one or more installments totaling Rs 20,001 crore.

Ambuja had said that the warrant holder would pay at least Rs 104.72, which would be about 25 per cent of the issue price at the time of subscription, and Rs 314.15 at the time of exercise of the rights to convert into equity shares.

According to Ambuja Cements, the allotment has been made in accordance with the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and other applicable guidelines.

“The equity shares issued on conversion of the warrants so issued shall be listed on the BSE Limited and the National Stock Exchange of India Limited,” it said.

After its acquisition by the Adani Group, Gautam Adani is now the chairman of the board of Ambuja Cements.

Ambuja Cements also holds 50.05 per cent stake in ACC Ltd.

Last month, the Adani Group announced the completion of the acquisition of Ambuja Cements and ACC for a total consideration of $6.5 billion, which includes the purchase of Swiss major Holcim’s stake in the two firms and the latter’s open offer to minority shareholders.

Days after the acquisition, the Adani Group pledged its entire stake in Ambuja Cements and ACC Ltd to Deutsche Bank’s Hong Kong branch for $13 billion.

Adani acquired Ambuja Cement and ACC through Mauritius-based SPV Endeavor Trade and Investment Limited (ETIL), which is owned by Accent Trade and Investment Limited (XTIL).

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