Ambuja Cements raises Rs. 5k cr via warrants to Adani family co

New Delhi: Ambuja Cements Ltd on Tuesday said it has issued 47.74 crore warrants to Adani family firm Harmonia Trade and Investment and raised Rs5,000 crore. Ambuja Cement, now a part of Adani Cement, has issued 47.74 crore warrants at a price band of Rs418.87, said a regulatory filing by the company. As per the terms and conditions, the Adani group family has contributed Rs5,000.15 crore, which is 25 per cent of the Limited issued price, it added. "We would like to inform you that, the Finance Committee of Directors of the Company, at its meeting held today approved allotment of the warrants of the Company by way of the private placement on a preferential issue basis to Harmonia Trade and Investment Ltd," Ambuja said.

The warrants issued on a preferential issues basis to Adani Group firm have a face value of Rs2, it added. On October 8, the shareholders of Ambuja Cements in an EGM of the company had approved proposals, including the resolution to raise Rs20,000 crore from the Adani family firm by issuing warrants and appointment of Gautam Adani and directors on the board of the company. In the EGM, Ambuja Cements has sought approval for allotment of preferential allotment of 47.74 crore warrants at a price band of Rs418.87 to Harmonia Trade and Investment Ltd, totalling Rs20,001 crore in one or more tranches.

The warrant holder would pay a minimum amount of Rs104.72, around 25 per cent of the issue price at the time of subscription and a further payment of Rs314.15 at the time of exercise of the rights to convert into equity shares, Ambuja said. According to Ambuja Cements, the allotment has been undertaken 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.