Adani to sell 3% in Ambuja Cement for $500 million as part of holdings adjustment in group: Sources
New Delhi: Adani group promoters may sell up to 3 per cent of their shares in Ambuja Cements as part of a regular adjustment of holdings they carry to keep stake across the ports-to-energy conglomerate at desired levels, sources said.
Promoters will sell about 7 crore shares, or 2.84 per cent, in the cement maker for Rs 4,198 crore, sources aware of the matter said.
The offer price of Rs 600 apiece is at a 5 per cent discount to Thursday's closing price of Rs 632.90 on BSE.
Billionaire Gautam Adani-led promoter group holds shares worth USD 125 billion across the 10 listed companies of the conglomerate.
Just like Berkshire Hathaway, they actively manage investment portfolios, which include owner stock, by regularly adjusting holding.
This with a view to providing strategic flexibility for events such as an acquisition.
The group, which has attracted large long-only investors, also does the adjustment to suit the needs of an investor, they said.
While the long-only investors typically are invested in a stock for a long-term of 10-15 years, in hypothetical scenarios some may at a given point of time want to shed a part of the shareholding to meet funding needs. Instead of the investors tapping the open market, the promoters offer the flexibility of picking up those stocks for the time being and replenishing them at a later day.
Sources said the adjustments in the holdings are done on a regular basis to keep the promoters’ interest at a desired level.
The equity adjustments typically range from 0.5 per cent to 3 per cent.
The stake sale in Ambuja Cement is part of that and not linked to any debt reduction, they said adding the debt is at the company level.
Promoters may look to shed some stake in Adani Power in October, they said.
Ambuja is one of the two firms that Adani bought in 2022 from Holcim Ltd to emerge as India's second-largest cement maker overnight.
The sale of stake through block deals will boost the public float of the company.
On Monday, the conglomerate stated that it has enough cash to cover more than 30 months of debt payments and that its businesses are firing on all cylinders.
Cash balance at the group accounted for 24.8 per cent of gross debt of Rs 2.41 lakh crore as of the end of June, up from 17.7 per cent a year earlier, it had said in a statement. "24.77 per cent of gross debt is in the form of cash balances providing liquidity to cover 30 months of debt servicing." The conglomerate saw June quarter pre-tax profit surge by 33 per cent on the back of strong performance by the core infrastructure business as also emerging businesses ranging from solar and wind manufacturing to airports.
"EBITDA (in April-June) surged by 32.87 per cent year-on-year to reach Rs 22,570 crore, resulting in a trailing twelve-month (TTM) EBITDA of Rs 79,180 crore, marking a 45.13 per cent increase over the corresponding TTM of the previous year," the group said.
Group net profit jumped over 50 per cent to Rs 10,279 crore in April-June - the first quarter of the current 2024-25 fiscal year.
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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
