Institutional investor advisory firm IiAS has recommended the shareholders of Ambuja Cements to vote against the proposal to raise `20,000 crore from the Adani family firm by issuing warrants during the company’s extraordinary general meeting. Besides, it has also advised shareholders to vote against the appointment of Ameet Desai and Purvi Sheth as independent directors of the company.
Ambuja Cements, which also owns 50.05 per cent in ACC Ltd, has called an Extra Ordinary General Meeting (EGM) of the shareholders on Saturday.
It has sought shareholders’ approval on 12 resolutions, which include preferential allotment of 47.74 crore warrants at a price band of `418.87 to Harmonia Trade and Investment Ltd, an Adani group entity, totalling `20,001 crore in one or more tranches. The company has also sought approvals for the appointment of Adani Group chairman Gautam Adani, his son Karan Adani and two directors and four independent directors on the board. In its voting advisory, IiAS has said: “Assuming full conversion of the warrants, the issue will lead to a dilution of 19.4 per cent on the expanded capital base which is high.