GQG Partners and others buy stake in Ambuja Cements worth Rs 4,251 crore
Ambuja cements (Photo: Bloomberg)
Several prominent investors including GQG Partners, National Pension System Trust and SBI Life Insurance on Friday bought stakes in Ambuja Cements offered by the billionaire Adani family. The family raised Rs 4,251 crore through the share sale and the proceeds will be allocated to accelerate investments in its group companies. The transaction is part of managing and balancing the Adani family’s portfolio, which is currently valued at $125 billion, banking sources said.
The shares were sold in the block trade window of the stock exchanges, where block trades worth Rs 20,000 crore have taken place across companies since Monday.
According to stock market statistics, GQG Partners was the largest buyer, acquiring stakes worth Rs 1,679 crore in Ambuja Cements. National Pension System Trust acquired stakes worth Rs 525 crore, while SBI Life Insurance acquired stakes worth Rs 500 crore (see chart).
According to bankers, the sale of the shares in Ambuja Cements by the initiators is part of the Adani family’s plans to reduce their stake in the group’s companies by up to 3 percent. The listed companies of the group are trading at their highest level in the past 52 weeks.
The Adani group is investing $100 billion in the infrastructure sector over the next decade, of which the group will invest $15 billion in the current financial year alone.
“Several international, long-term investors want to be part of India’s long-term story and they wanted to invest a large amount in the group’s shares. Therefore, the family would sell some of their stake in the next few months,” a banker said.
Ambuja Cements closed flat at Rs 633 per share, and the shares were sold through block deals for Rs 625 per share.
The sale will give the family a 67.3 percent stake in Ambuja Cements, which it acquired from Swiss materials company Holcim in May 2022. At the same time, the family, which has a 71.71 percent stake in Adani Power, is considering attracting global investors by selling a small stake of between 0.5 and 3 percent in the power generation company, but no decision has been made yet, a source close to the development said.
First publication: Aug 23, 2024 | 7:04 PM IST