As the conglomerate attracts interest from a variety of investors, billionaire Gautam Adani has raised USD 1.38 billion (Rs 11,330 crore) from selling stakes in three group firms, bringing the total cash raised over four years to $9 billion.
The ports-to-energy conglomerate issued a statement in which it stated that it “is committed to raising capital to fulfill its 10-year roadmap of the revolutionary capital management program, which originated in 2016 to execute the plans for various portfolio companies.”
In its most recent transaction, the Adani family sold stakes in its three portfolio firms, Adani Enterprises Ltd., Adani Green Energy Ltd., and Adani Transmission Ltd., for USD 1.38 billion (Rs 11,330 crore), according to the statement. In order to support growth and near-term commitments of both debt and equity for the portfolio companies over the next 12 to 18 months, this “ensures higher capital availability at the group level.”
Additionally, as the firm works to recover from claims of fraud made by a US short-seller, the three portfolio companies have secured board approval for main issuances through a share sale to investors.
The group’s flagship company, Adani Enterprises Ltd., intends to raise Rs 12,500 crore through selling stakes to investors, and Adani Transmission another Rs 8,500 crore. The company’s intention to raise Rs 12,300 crore is for renewable energy.
This occurs five months after the Hindenburg report caused Adani Enterprises to cancel a Rs 20,000 crore follow-on public offering (FPO). The corporation gave subscribers their money back even though the deal had been fully subscribed to.
Upon publishing a damaging report in January accusing Adani Group of accounting fraud and stock price manipulation, US short-seller Hindenburg Research set off a stock market meltdown. It had destroyed roughly USD 145 billion from the conglomerate’s market value.
Adani Group has refuted all of Hindenburg’s accusations and is preparing a comeback strategy that involves redefining its goals, abandoning acquisitions, paying off debt in advance to allay worries about its cash flows and borrowings, and slowing down the pace at which it invests in new projects.
Promoters have sold shares to renowned US-based global equity investment boutique GQG Partners since May in two tranches. The most recent took place earlier this month, when $1.38 billion was raised. “A similar stake-sale by the family in March 2023, aggregating USD 1.87 billion (Rs 15,446 crore), resulted in full prepayment of margin-linked, share-backed financing and created flexibility in a rising rate environment to equitize debt capital as and when due,” according to the statement.
With a number of investor roadshows, early loan repayments, and proposals to slow down the rate of expenditure on new projects, the business has been attempting to regain market confidence.
“Adani Group has raised over USD 9 billion in a short period of four years,” it said. “Adani Group, which started the capital transformation journey for its core infrastructure portfolio in 2019,” it added.
These significant international investors’ belief and confidence in the Adani Group’s companies and dedication to the highest standards of governance serve as evidence of the group’s underlying strength.
The accomplishment of the investment program also shows that the group is capable of raising money from businesses at every level and achieving its objectives, according to the statement.
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