PremiumAmbuja Cements on Tuesday received approval from the Finance Committee of Directors for the allotment of warrants worth more than ₹5,000 crore to Adani Group-backed firm, Harmonia Trade and Investment on a preferential issue basis through private placement. Allotment of warrants to Harmonia is expected to equip Ambuja to capture the growth in the market.
In its regulatory filing, Ambuja Cements said, "we would like to inform you that, the Finance Committee of Directors of the company, at its meeting held today (October 18) approved allotment of the warrants of the company by way of private placement on a preferential issue basis to Harmonia Trade and Investment."
The cement player allotted 477,478,249 warrants to Harmonia at an issue price of ₹418.87 apiece having a face value of ₹2 each. The paid-up value of warrants is ₹104.72 apiece which is a minimum of 25% of the issued price.
The transaction aggregated to ₹5,000.15 crore.
It further said, "the equity shares issued upon conversion of the warrants so issued will be listed on BSE and NSE."
Last month, Ambuja Cements stated that each warrant will be convertible into or exchanged for 1 fully paid-up equity share of Ambuja Cements in cash aggregating up to ₹20,001 crores which may be exercised in one or more tranches during the period commencing from the date of allotment of the warrants until the expiry of 18 months.
On September 16, Gautam Adani-backed Group emerged as the second largest cement player by completing the acquisition of Ambuja Cements and ACC for $6.5 billion. Post the transaction, Adani holds 63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through Ambuja Cements).
The allotment of warrants to Harmonia is expected to equip Ambuja to capture the growth in the market. In a statement on September 16, the Group said, "The actions will significantly accelerate value creation for all stakeholders, in line with the Adani Group’s business philosophy."
On BSE, Ambuja Cements shares are trading at ₹509.30 apiece down by 2.2% at around 2.36 pm. The shares had touched an intraday high and low of ₹524.70 apiece and ₹508.50 apiece earlier today.
Ambuja Cements' market cap is around ₹1,01,128.91 crore.