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

According to a regulatory update on Tuesday, the group led by billionaire Gautam Adani has committed its 63.15% stake in Ambuja Cements and 56.7% of ACC, 50% of which is held by Ambuja, to Deutsche Bank Hong Kong.
Adani Group said it was “for the benefit of certain lenders and other financiers”, and it now plans to double its cement production capacity to 140 million tonnes over the next five years.

Shares of Ambuja Cements closed at Rs 574.10 per share on the BSE on Tuesday, while shares of ACC Ltd closed at Rs 2,725.70.

Adani acquired the two companies through Mauritius-owned SPV Endeavor Trade and Investment Ltd (ETIL), owned by Xcent Trade and Investment Ltd (XTIL).

Both parties have issued $535 million 12.0739% Senior Secured Notes due 2024, taking advantage of certain financial obligations of Deutsche Bank; under the terms and conditions stated, ETIL and Xcent have set “over 100% interest in Deutsche Bank”.

Last week, Adani Group announced the completion of its $6.5 billion acquisitions of Ambuja Cements and ACC, which included the acquisition of Swiss major Holcim’s stake in both companies and subsequent public offerings to minority shareholders.

Speaking to shareholders earlier this week, Gautam Adani said his group plans to double its cement manufacturing capacity and become the most profitable manufacturer in the country.

He believes India’s cement demand has grown exponentially, driven by record economic growth and government infrastructure development, which will significantly expand profit margins.

At the acquisition closing event on September 17, the founder and chairman of Adani Group said that Port Energy Group had become the second largest cement manufacturer in the country in one fell swoop.

He called the acquisition historic and said it was India’s largest-ever M&A deal in the infrastructure and materials sectors and was completed in a record four months.

Explaining the reasons for entering the cement industry, he said that although India is the second largest cement producer in the world, its per capita consumption is only 250 kg, compared to 1,600 kg in China.

He said that the group, the world’s largest solar company, has pledged $70 billion in clean energy operations, including green hydrogen.

Adani Group is the largest airport operator in the country, with 25% of passenger traffic and 40% of air cargo traffic. It is the country’s largest port and logistics company, with a 30% market share.