New Delhi: Adani Group, one of India’s largest conglomerates, is reportedly considering selling its stake in Ambuja Cements Ltd, a leading cement manufacturer in India, to raise funds for its expanding businesses. According to reports, Adani may sell 4-5% of its stake in Ambuja for around $450 million.
Ambuja Cements Ltd is a subsidiary of global cement manufacturer Lafarge Holcim, and Adani Group holds a 10.13% stake in the company. The possible sale of a 4-5% stake in Ambuja by Adani Group would lower its holding in the cement manufacturer to around 5-6%.
Adani Group is one of the fastest-growing business conglomerates in India, with interests in various sectors such as infrastructure, power, ports, and logistics, among others. The group has been on an acquisition spree recently, expanding its footprint across India and globally. However, this rapid expansion has put pressure on the group’s finances, and Adani may be looking to raise funds to support its growth plans.
According to reports, Adani may use the proceeds from the sale of its stake in Ambuja to fund its renewable energy projects, which are a key focus area for the group. Adani is one of India’s largest renewable energy developers, with plans to build 25 GW of renewable energy capacity by 2025.
The possible sale of Adani’s stake in Ambuja comes at a time when the cement industry in India is witnessing strong demand and rising prices. Cement manufacturers have been benefiting from increased government spending on infrastructure projects, as well as a surge in demand from the housing sector.
However, the sale of Adani’s stake in Ambuja may also have an impact on LafargeHolcim, which is looking to increase its stake in the Indian cement manufacturer. LafargeHolcim currently holds a 63.83% stake in Ambuja Cements, and reports suggest that the company may be interested in increasing its holding to around 75%.
In conclusion, Adani Group’s possible sale of its stake in Ambuja Cements may have significant implications for the Indian cement industry and LafargeHolcim. However, it could also provide Adani with the funds it needs to support its ambitious growth plans, particularly in the renewable energy sector.
