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Warburg Pincus to buy stake in Gujarat Ambuja

India's fourth-largest cement maker Gujarat Ambuja Cements Ltd said on Friday global private equity fund Warburg Pincus will pick up a 9.8 percent stake in the company for Rs 3.6 billion.

Gujarat Ambuja said in a statement its board has approved the issue of eight million equity shares to Warburg Pincus at a price of Rs 225 each and another eight million warrants convertible into the same number of equity shares at the same price.

The warrants are convertible into shares on or before September 30, 2002.

The investment will be used to fund current capital expenditure and other growth opportunities, Gujarat Ambuja said, without elaborating.

Gujarat Ambuja shares were up Rs 13.25 at 203.50, up 6.96 per cent, while the Sensex was up 0.43 per cent.

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