Adani Group, the Indian multinational conglomerate, is reportedly seeking to sell its stake in Ambuja Cement in a bid to reduce debt. According to the Financial Times, Adani is hoping to raise around $450 million through the sale of its 10% stake in the cement company.
Ambuja Cement is one of India's leading cement manufacturers, with a strong presence in the Indian market and an established reputation for quality and reliability. The company is a subsidiary of Swiss multinational LafargeHolcim, which owns a 63% stake in the company.
Adani's decision to sell its stake in Ambuja Cement comes as the group looks to reduce its debt burden and focus on its core businesses. The group has been expanding rapidly in recent years, with interests in a range of sectors including ports, energy, and infrastructure.
However, the group's rapid expansion has come at a cost, with Adani's debt levels rising significantly in recent years. As of March 2020, the group's debt stood at around $20 billion, prompting concerns from investors and analysts.
The sale of Adani's stake in Ambuja Cement would help to address some of these concerns, providing much-needed funds to reduce the group's debt levels. The move would also allow the group to focus on its core businesses, which have been performing well despite the challenges posed by the COVID-19 pandemic.
According to the Financial Times, Adani is already in talks with potential buyers for its stake in Ambuja Cement, and is hoping to complete the sale in the coming months. The move would be a significant step towards reducing the group's debt burden and shoring up its finances.
In conclusion, Adani Group's decision to sell its stake in Ambuja Cement is a sign of the group's efforts to reduce its debt burden and focus on its core businesses. The move is likely to be welcomed by investors and analysts, and could help to improve the group's financial position in the coming months. The sale is also a reflection of the challenges facing companies in India's cement sector, which has been hit hard by falling demand and lower prices in the wake of the COVID-19 pandemic.
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