Adani Group pledges stake worth $13 bn in Ambuja Cements and ACC

This is "for the benefit of certain lenders and other finance parties," says Adani Group.

The Adani Group has pledged its entire stake worth $13 billion in Ambuja Cements and ACC, days after completing its $6.5 billion acquisition of the two companies.

According to regulatory updates on Tuesday, September 20, 2022, billionaire Gautam Adani-led group has encumbered its 63.15 per cent stake in Ambuja Cements and 56.7 per cent stake in ACC (of which 50 per cent is held by Ambuja) to the Hong Kong Branch of Deutsche Bank AG.

This is "for the benefit of certain lenders and other finance parties," said Adani Group which has now chalked out plans to double the cement manufacturing capacity to 140 million tonne in next five years.

Ambuja Cements shares closed at ₹574.10 apiece on BSE on Tuesday and ACC Ltd's stock settled at ₹2,725.70.

Adani has acquired the two firms through a Mauritius-based SPV Endeavour Trade and Investment Ltd (ETIL), which is owned by Xcent Trade and Investment Ltd (XTIL).

Both had "availed certain financial indebtedness" for Deutsche Bank for "issuance of $535,000,000 12.0739 per cent Senior Secured Notes due 2024"  and pursuant to the terms and conditions set out, ETIL and Xcent have created "a charge over 100 per cent of the shares in favour of Deutsche Bank AG".

Last week, Adani Group announced the completion of the acquisition of Ambuja Cements and ACC for $6.5 billion which includes the buyout of Swiss major Holcim's stake in the two firms and subsequent open offers to minority shareholders.