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
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?