Adani Group Divests 2.8% Stake in Ambuja Cements for Rs 4,250 Crore

Adani Group's promoter divested a 2.8% stake in Ambuja Cements on Friday, raising Rs 4,250 crore through open market transactions. This sale is part of the group's routine adjustments to maintain desired stake levels across its diverse portfolio.

Representative image

GQG Partners Increases Stake

Rajiv Jain-backed GQG Partners acquired over 4.39 crore shares, equating to a 1.78% stake in Ambuja Cements, through bulk and block deals. The shares were purchased at an average price of Rs 625.50 each, totalling Rs 2,746.79 crore. Consequently, GQG Partners' stake in Ambuja Cements rose from 1.35% to 3.13%.

Details of the Stake Sale

According to data from the National Stock Exchange (NSE), Holderind Investments Ltd., a promoter in Ambuja Cements, sold 6.79 crore shares at an average price of Rs 625.50 per share. This transaction amounted to Rs 4,250.64 crore. Following this sale, Holderind Investments' shareholding in Ambuja Cements decreased from 50.90% to 48.1%, and the combined promoters' stake dropped from 70.33% to 67.53%.

Buyers of the Shares

The shares were acquired by several entities including Axis Mutual Fund, Baroda BNP Paribas MF, ICICI Prudential MF, Invesco MF, Mirae Asset MF, Canara HSBC Life Insurance Company, SBI Life Insurance, and National Pension System (NPS) Trust. Additionally, US-based Morgan Stanley and The Vanguard Group, along with Norway's government pension fund, were among the buyers.

Adani Group's Financial Position

The Adani Group stated on Monday that it has sufficient cash reserves to cover over 30 months of debt payments and that its businesses are performing robustly. As of June end, the group's cash balance accounted for 24.8% of its gross debt of Rs 2.41 lakh crore, up from 17.7% a year earlier.

The conglomerate reported a significant increase in pre-tax profit for the June quarter, driven by strong performance in core infrastructure and emerging sectors like solar and wind manufacturing and airports.

Financial Performance Highlights

The group's EBITDA for April-June surged by 32.87% year-on-year to Rs 22,570 crore, resulting in a trailing twelve-month (TTM) EBITDA of Rs 79,180 crore—a 45.13% increase compared to the previous year's TTM period.

Ambuja Cements' shares saw a slight rise of 0.51%, closing at Rs 635 each on the NSE on Friday.

Sources indicated that these equity adjustments are routine and typically range between 0.5% and 3%. They clarified that the recent stake sale is not related to any debt reduction efforts.

Ambuja Cements is one of two companies Adani acquired from Holcim Ltd in 2022, making Adani India's second-largest cement producer overnight.

The group's net profit for the April-June period surged over 50%, reaching Rs 10,279 crore for the current fiscal year.

The promoter group led by billionaire Gautam Adani holds shares worth USD 125 billion across its ten listed companies.

The Adani Group's financial health appears strong with a cash balance covering nearly a quarter of its gross debt and robust earnings growth across its business segments.