Adani warrant conversion deadline may boost Ambuja Cements
Cement

Adani warrant conversion deadline may boost Ambuja Cements

The spotlight in the upcoming weeks may fall on Ambuja Cements' shares as the Adani Group's eighteen-month deadline to convert its warrants into the company's shares approaches on April 18.

In October 2022, Ambuja Cements issued warrants worth Rs 200 billion to the Adani Group on a preferential basis at Rs 418.8 per share. A mandatory upfront payment of Rs 50 billion, constituting 25% of the warrant issue, was received by the company.

As the deadline approaches, the Adani Group is required to bring in an additional Rs 150 billion. Failure to convert the warrants would result in the forfeiture of the Rs 50 billion payment made by the conglomerate.

At present, Ambuja Cements' stock is trading at Rs 555, reflecting a 32% premium over the issue price of Rs 418.8.

According to SP Tulsian, an independent market analyst, "Amidst the ongoing infrastructure surge and the influx of capital for capital expenditures, Ambuja's stock is poised for strong performance in the short term. Despite investor awareness regarding warrant conversion, the impending event is anticipated to have a positive impact."

The conversion of warrants into shares would increase the Adani Group's stake in Ambuja from 63.19% to 70.33%. In 2022, the Adani Group declared its acquisition of Swiss cement major Holcim's stake in Ambuja Cements and ACC. Over the past three months, the stock has rallied by 32%, and in the last year, it has seen a 57% increase, compared to the 14% and 24% gains in the Nifty during the respective periods.

The spotlight in the upcoming weeks may fall on Ambuja Cements' shares as the Adani Group's eighteen-month deadline to convert its warrants into the company's shares approaches on April 18. In October 2022, Ambuja Cements issued warrants worth Rs 200 billion to the Adani Group on a preferential basis at Rs 418.8 per share. A mandatory upfront payment of Rs 50 billion, constituting 25% of the warrant issue, was received by the company. As the deadline approaches, the Adani Group is required to bring in an additional Rs 150 billion. Failure to convert the warrants would result in the forfeiture of the Rs 50 billion payment made by the conglomerate. At present, Ambuja Cements' stock is trading at Rs 555, reflecting a 32% premium over the issue price of Rs 418.8. According to SP Tulsian, an independent market analyst, Amidst the ongoing infrastructure surge and the influx of capital for capital expenditures, Ambuja's stock is poised for strong performance in the short term. Despite investor awareness regarding warrant conversion, the impending event is anticipated to have a positive impact. The conversion of warrants into shares would increase the Adani Group's stake in Ambuja from 63.19% to 70.33%. In 2022, the Adani Group declared its acquisition of Swiss cement major Holcim's stake in Ambuja Cements and ACC. Over the past three months, the stock has rallied by 32%, and in the last year, it has seen a 57% increase, compared to the 14% and 24% gains in the Nifty during the respective periods.

Next Story
Infrastructure Urban

CONCOR Launches Double-stack Service Between NCR and Varnama

State-run Container Corporation of India (CONCOR) has launched double-stack container train services between the National Capital Region (NCR) and Varnama near Baroda. This initiative aims to facilitate customers at Nhava Sheva near Mumbai, home to Jawaharlal Nehru Port (J N Port). On December 21, the first double-stack container train from Khatuwas and Dadri in NCR reached CONCOR’s Gati Shakti Multimodal Cargo Terminal (GCT) at Varnama, situated along the Western Dedicated Freight Corridor (WDFC). The train carried export cargo destined for J N Port, according to a statement from the state..

Next Story
Infrastructure Transport

Less than 10% of Rs 40 Billion State-aid for Shipbuilding Utilised

A government-sanctioned financial assistance program worth Rs 40 billion, intended to support local shipbuilders over a decade starting in April 2016, has seen minimal utilisation, with only Rs 3.85 billion—less than 10 per cent of the total fund—disbursed thus far. With 15 months remaining before the scheme concludes, its uptake has been limited. The financial aid applies to shipbuilding contracts signed between April 1, 2016, and March 31, 2026. According to a written response provided by Union Minister of Ports, Shipping, and Waterways Sarbananda Sonowal to the Rajya Sabha on December ..

Next Story
Infrastructure Transport

Civil Aviation Minister Opens New ATC Tower at Indore Airport

The Minister for Civil Aviation, Ram Mohan Naidu Kinjarapu, inaugurated the new Air Traffic Control (ATC) Tower-cum-technical block at Devi Ahilyabai Holkar International Airport in Indore, Madhya Pradesh. During the inauguration, the minister toured the facility, where ATC experts explained various technical aspects of tracking and coordinating flights from the newly constructed tower. In addition to the ATC tower, the airport has also introduced a zero-waste plant. The union minister confirmed that this initiative aligns with the government’s commitment to sustainability. Minister Ki..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000