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Ambuja Cements has announced that its shareholders approved its plan to raise funds to the tune of Rs 20,000 crores from an Adani Group firm, alongside the appointment of Gautam Adani and others to its Board.
The EGM, which was chaired by Karan Adani in the absence of Gautam Adani, was being called by the company to seek the vote of shareholders on a number of matters via 12 resolutions.
Firstly, to raise Rs 20,000 crores in exchange for preferentially allotted warrants to Harmonia Trade and Investment Ltd., an Adani Group entity. Secondly, to seek approval for the appointment of Gautam Adani, Karan Adani, 2 directors and 4 independent directors on the Board of Ambuja Cements. Lastly, to amend the AoA of the company.
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Lias, an advisory firm, had asked the shareholders of Ambuja Cements to vote against both proposals due to a number of concerns. It was concerned that issuing the warrants would lead to the promoter holding to increase to 70.3% in the company while getting warrants which were issued at a discount of 19.4% from CMP. Moreover, it was against the appointment of Ameet Desai and Purvi Sheth to the Board.
Despite the firm's concerns, the shareholders voted in favour of both proposals, resulting in both resolutions being passed with overwhelming support.
The proposal to appoint Gautam Adani and Karan Adani received 96.51% and 99.96% respectively, votes in favour. The resolution to raise funds via warrant issue received the support of 91.37% of shareholders.
Moreover, all other resolutions regarding the amendments to the AoA, the appointment of directors and the change of its registered office to Ahmedabad-based Adani Corporate House were all passed favourably.
The stock of Ambuja Cements closed at Rs 522.65 per share on Monday.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
