Adani Group Pledges Shares of Ambuja Cements, ACC worth $13 billion

Billionaire Gautam Adani’s group is once again in news for pledging shares valued at about $ 13 Billion in two Indian cement firms. The move comes just days after it completed the acquisition from Holcium Limited.

Adani Group pledged its ownership of the family's 63.15% share in Ambuja Cements and its 56.69% investment in ACC (of which 50.05% is held through Ambuja Cements), according to filings made by Ambuja Cements to the BSE on Tuesday. After Ultratech Cement Ltd., the Adani family is now India's second-largest cement manufacturer after finalizing the acquisition of Ambuja Cements and ACC from Holcim India on September 16.

Since the deal is a "non-disposal undertaking," the shares cannot be sold until the debt is paid off.

The encumbered holding in ACC and Ambuja is valued at $13 billion as of Monday's closure. The agreements under which the shares have been pledged include Endeavour Trade and Investment Ltd. and Xcent Trade and Investment Ltd., organizations connected to the Adani Group.

Endeavour Trade gained approval from India's antitrust office in August to purchase a share in Holderind Investments Ltd., a holding company based in Mauritius that holds the India unit of Holcim.

Following the completion of the acquisition, Adani Group reorganized the boards of Ambuja Cements and ACC on Friday.

On September 12, it was announced that ACC and Ambuja Cements, two of India's oldest cement companies, will welcome Gautam Adani and his son Karan to their boards. A change to the boards of the two cement manufacturers was announced on September 16.

The new Ambuja Cements board is made up of Gautam Adani, who is the chairman, Karan Adani, Rajnish Kumar, a former SBI chairman who now serves as an independent director, Maheswar Sahu, the chairman of GIFT SEZ and IRM Energy, Ameet Desai, a former adviser to Gautam Adani at the Adani Group as executive director and group CFO, Purvi Sheth, an hr professional (CEO of special projects at Adani Ports and Special Economic Zone).