Axis MF, GQG Partners, others acquire stake in Ambuja Cements for ₹4,250 crore

Rajiv Jain-backed GQG Partners Acquires Stake in Ambuja Cements

Rajiv Jain’s investment firm, GQG Partners, recently made a significant purchase of over 4.39 crore shares, representing a 1.78% stake in Ambuja Cements through bulk and block deals.

The acquisition was made at an average price of ₹625.50 per share, with a total deal value of ₹2,746.79 crore. Following this transaction, GQG Partners’ stake in Ambuja Cements has increased to 3.13%.

Simultaneously, Holderind Investments Ltd, a promoter of Ambuja Cements, sold 6.79 crore shares, amounting to a 2.8% stake in the company. The shares were sold at an average price of ₹625.50 each, totaling ₹4,250.64 crore.

As a result of the stake sale, Holderind Investments’ shareholding in Ambuja Cements has decreased to 48.1% from 50.90%, and the combined stake of the promoters has reduced to 67.53% from 70.33%.

Various investors, including Axis Mutual Fund, Baroda BNP Paribas MF, and SBI Life Insurance, were among the buyers of Ambuja Cements’ shares. Additionally, US-based Morgan Stanley and The Vanguard Group, along with Norway government’s pension fund, also acquired shares in the company.

Although there have been adjustments in the holdings to maintain desired levels, the stake sale in Ambuja Cement is not linked to any debt reduction. Ambuja Cement, acquired by the Adani Group in 2022, is now India’s second-largest cement maker.

Following these developments, Ambuja Cement’s shares saw a slight increase, closing at ₹635 on the NSE. The Adani Group reassured investors of its financial stability, stating that it has enough cash to cover more than 30 months of debt payments.

In the June quarter, the conglomerate reported a 33% increase in pre-tax profit, driven by strong performance across its core infrastructure business and emerging sectors like solar and wind manufacturing. The group’s net profit also surged over 50% to ₹10,279 crore in the April-June period.