Adani Group Promoters To Sell 3% Stake In Ambuja Cements For Rs 4,198 Crore

Ambuja Cements shares will be sold at Rs 600 apiece, representing a 5 per cent discount to Thursday's closing price of Rs 632.90 on the BSE

The promoters of Gautam Adani-led Adani Group are planning to offload around 7 crore shares in Ambuja Cements, amounting to a 2.84 per cent stake. The shares will be sold at Rs 600 apiece, representing a 5 per cent discount to Thursday's closing price of Rs 632.90 on the BSE, according to sources.

This move comes as part of the group’s routine strategy of adjusting shareholdings across its portfolio of listed companies, which span from ports to energy. The Adani promoter group manages an investment portfolio valued at $125 billion across 10 listed entities, and regularly adjusts holdings to maintain strategic flexibility, sources added.

Similar to the approach used by Berkshire Hathaway, Adani Group actively manages its ownership stock. This flexibility allows promoters to cater to long-term investors who might need to liquidate portions of their holdings due to funding requirements. In such cases, the promoters absorb the shares and replenish them later, preventing the investor from selling on the open market.

Sources indicated that the equity adjustments, typically ranging from 0.5 per cent to 3 per cent, are a regular practice to maintain promoter stake at desired levels. This current sale of shares in Ambuja Cement is a part of that adjustment process and is not related to any debt reduction.

The promoters may also look to divest a stake in Adani Power in October, sources said. The sale of shares in Ambuja Cement, one of two companies acquired by Adani from Holcim Ltd in 2022, will help increase the company’s public float. The move positions Adani as the second-largest cement producer in India.

Adani Group recently reported strong financials, indicating sufficient cash reserves to cover 30 months of debt payments. As of June 2023, the group’s cash balance stood at 24.8 per cent of its gross debt of Rs 2.41 lakh crore, up from 17.7 per cent a year earlier.

The group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 32.87 per cent year-on-year in the April-June quarter, reaching Rs 22,570 crore. For the trailing twelve months, EBITDA grew by 45.13 per cent, totaling Rs 79,180 crore. Net profit for the group jumped over 50 per cent to Rs 10,279 crore during the same period, signaling robust growth in both its core infrastructure businesses and emerging sectors such as renewable energy and airports.

This strategic sale and financial resilience underscore Adani's ability to maintain operational strength while continuously optimising its holdings.