Indian billionaire Gautam Adani's family raised its stake in Ambuja Cements to 70.3% from 66.7% with a 83.39 billion rupees ($996.7 million) investment, in a move to help the cement maker boost its production capacity.

Intense competition in the Indian cement sector has led to companies rushing to ramp up production capacities as demand for construction materials remains buoyant.

The Adani family has increased its stake by converting warrants into shares, Ambuja said in an exchange filing on Wednesday.

The third round of investment, following similar rounds in October 2022 and March 2024, completes the family's 200 billion rupees investment in the cement maker that Adani Group bought from Swiss building materials giant Holcim in 2022.

The injected funds will be used to increase Ambuja Cements' manufacturing capacity to 140 million tonnes per annum (MTPA) by 2028 from around 76 MTPA as of December-end.

Earlier this month, larger rival and market leader UltraTech Cement unveiled plans to set aside nearly $4 billion for ongoing capital expenditure over the next three years. ($1 = 83.6674 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Shounak Dasgupta)