Adani to sell stakes in cement industry

Adani group is planning to sell stake worth around $450 million in one of its subsidiary,  Ambuja Cement.

According to reports, Adani on March 9 issued a formal request to global lenders for selling four to five percent stake in the cement business. Adani owns 63 percent stake in Ambuja Cement.

The shares of Ambuja Cement closed at around Rs 378 a share at the market on March 10, which was 1.6 percent lower as against the previous close. At the current market price, a five-percent stake in the company would be worth approximately $465 million.

The move to sell the stake, according to a report in the Financial Times, is likely to be aimed at lowering the group’s overall net debt that stands at around $24 billion, and restore confidence among investors following the rout suffered in the stock market last month.

The listed entities of Adani cumulatively shed over $100 billion, after the US-based short seller Hindenburg Research released a report on January 24, alleging accountancy fraud and stock manipulation.

Adani has denied all the allegations, and has accused Hindenburg of committing a “calculated securities fraud”.