India’s Adani Group has pledged shares worth about $12.5 billion in two cement plants, days after the conglomerate controlled by billionaire Gautam Adani completed the purchase of stakes in the businesses from Switzerland’s Holcim. The pledged shares of ACC and Ambuja were worth around 989.46 billion rupees based on Monday’s closing prices and represented a 57% stake in ACC and a 63% stake in Ambuja Cements.
The Hong Kong branch of Deutsche Bank AG, which is the agent for the pledged shares in ACC and Ambuja, made the announcement in filings with the Indian stock exchanges. In May, the group announced the acquisition of Holcim’s cement businesses in India for $10.5 billion to become the country’s second largest cement producer.
Following the completion of the transaction, Adani said on Saturday that production capacity at the cement plants is expected to double by 2027. Adani, the world’s second-richest man after Elon Musk, has forayed into several sectors this year, from media companies to cement giants, in a frenzy that has raised concerns about his group’s level of debt.