Adani Group is looking to offload its stake in Ambuja Cement through a 2.84 percent stake sale in a block deal, with a floor price of Rs 600 per share. This move is expected to raise Rs 4200 crore for the Adani Group, which has a 70.33 percent stake in Ambuja Cement. The decision comes after the group's recent acquisition of Penna Cement and is aimed at further expanding their presence in the cement industry. Adani Group is looking to sell a 2.84 percent stake in Ambuja Cement through a block deal to raise Rs 4200 crore. This move follows the group's recent acquisition of Penna Cement and will help them further expand their presence in the sector. The block deal is set at a floor price of Rs 600 per share and is expected to bring in new capital for the group.
Adani Group Seeks to Divest Ambuja Cement Stake
Background
The Adani Group, India's leading conglomerate, has emerged as a prominent player in the cement industry through its acquisitions of Ambuja Cements and ACC. In recent months, the group has been strengthening its position in the sector by acquiring additional cement plants and increasing its stake in Ambuja Cements.
Ambuja Cement Stake Sale
Amidst its expansion plans, the Adani Group has announced plans to sell a 2.84 percent stake in Ambuja Cements through a block deal. This move is expected to bring in Rs 4200 crore ($530 million) for the group, which currently holds a 70.33 percent stake in Ambuja Cement.
The block deal is set at a floor price of Rs 600 per share and will be offered to institutional investors. The sale is expected to reduce the Adani Group's stake in Ambuja Cement to 67.49 percent.
Rationale
The decision to sell a portion of its Ambuja Cement stake comes after the group's recent acquisition of Penna Cement. This acquisition, along with the upcoming sale of the Ambuja Cement stake, is part of the Adani Group's strategy to further consolidate its position in the cement industry.
The capital raised from the stake sale will likely be used to fund the group's ongoing expansion plans, including the development of new cement plants and acquisitions.
FAQs
1. Why is the Adani Group selling a stake in Ambuja Cement?
To raise capital for ongoing expansion plans and further consolidate its position in the cement industry.
2. How much stake is the Adani Group selling?
2.84 percent, reducing its stake from 70.33 percent to 67.49 percent.
3. What is the floor price set for the block deal?
Rs 600 per share.
4. How much is the group expected to raise from the sale?
Approximately Rs 4200 crore ($530 million).
5. What impact will the sale have on Ambuja Cement's operations?
It is unlikely to have any significant impact on Ambuja Cement's daily operations or its position in the industry.
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