The Adani Group’s plans to raise funds may not face any hurdle as a clutch of marquee investors, both foreign and domestic, have shown interest. The group is planning to raise about $2.5-3 billion by offloading shares through qualified institutional placements (QIPs) or other modes. The funds would be utilised to reduce debt and for capital expenditure (capex) plans.
While foreign investors like Abu Dhabi-based International Holding Company, Abu Dhabi Investment Authority (ADIA) and GQG Partners are keen to pick up stakes in the company, domestic names like LIC and SBI seem to be interested too, sources close to the development said.
Besides general insurance companies and financial firms, investment arms of Indian conglomerates are also keen to participate, they added.
“Most global investors are upbeat as the group, during its roadshows conducted across Asia and Europe, had promised a 20% year-on-year growth across its companies. The share prices of all group companies are also on the rise,” one of the sources said.
Adani Group stocks had a mixed day at the bourses, with Adani Enterprises (AEL) falling the most at 5.90%. Out of the 10 listed entities, 7 fell while the rest three – NDTV, Adani Transmission (ATL) and Adani Total Gas – rose 5% each.
Two Adani group companies – AEL and ATL – have announced plans to raise up to `21,000 crore through QIPs or other modes to secure additional capital for their operations and growth strategies. While AEL plans to raise up to `12,500 crore, ATL is looking to raise about `8,500 crore.
AEL is the flagship company of the group, while ATL is the largest private power transmission and distribution company in India.
Adani Green Energy (AGEL), the renewable energy arm of the Adani Group, is also considering fundraising through share sale. While the company did not disclose the amount it intends to raise, sources close to the development had previously told FE that AGELwas looking to raise about $500-700 million (`4,100-5,740 crore), which would be used for capex and debt reduction.
However, AGEL cancelled its board meeting scheduled for Wednesday to seek approvals, citing non-availability of directors. The next meeting date will be informed with a fresh notice, AGEL said.
Apart from this, the investors have also shown interest in APSEZ and Adani Power. Earlier, the group had received financial assurances from three Japanese banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking and Mizuho Financial Group – which include loans for new projects and refinancing of high-cost debts. Its existing lenders, including Standard Chartered and Barclays, had also reaffirmed their confidence in the group’s operations.
In March, Adani Group sold minority stakes in four listed companies – AEL, ATL, APSEZ and AGEL – to American equity investment boutique GQG Partners for `15,446 crore.
Separately, on Wednesday, Adani Ports and Special Economic Zone (APSEZ) CEO Karan Adani met Vietnamese Prime Minister Pham Minh Chinh and said the group would invest about $3 billion in the country to build a green seaport ecosystem, and develop wind and solar power plants.
The group would work with relevant ministries and agencies of Vietnam to develop specific cooperation projects as well, according to a statement issued by the Vietnamese government.
To fund these expansion plans, the group has been conducting roadshows to regain trust after a January report by short-seller Hindenburg Research accused the company of “brazen” stock-price manipulation. The group’s market valuation had halved after the report.