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The Adani group is preparing to raise about $2-2.5 billion through equity sales, the second major fundraising by the group after it sold stakes in some of its firms to GQG Partners in March.
Four of the group companies — Adani Enterprises, Adani Green Energy, Adani Transmission and Adani Ports — are holding board meetings on May 13 to consider fresh fundraising, including issuing equity shares, private placement, QIP and a preferential issue, according to exchange filings by the companies.
Gaining in trade
While none of the companies disclosed the amounts that were being considered, sources said it was in the range of $2-2.5 billion and that funds were being raised from investors in the Middle East and Europe. One of the funder is expected to be Abu Dhabi-based IHC who had earlier committed around $600-million investment in Adani Enterprises’ failed follow-on public offer (FPO). The asset management company is expected to contribute a similar amount this time as well.
Shares of all the four companies gained on Thursday — while Adani Enterprises ended 5 per cent higher, Adani Green was up 1.24 per cent, Adani Transmission 3 per cent and Adani Ports closed 2.6 per cent higher on the NSE.
Paring debt
The funds are being raised partly to pay down the debt and also to invest in the group’s new initiatives including solar energy, airports, a petrochem project in Mundra, and in those which were postponed when the FPO was withdrawn.
The group had a total debt size of $25 billion at the end of March 31, while the value of its gross assets were at around $47 billion. Its current debt exposure profile is 39 per cent in bonds, 29 per cent to international banks and 32 per cent to banks and NBFCs. The group is also learnt to be reducing its exposure to banks using other sources of capital.
Company insiders say global investors regained confidence in the group with its commitment to 20 per cent annual growth in EBITDA, bringing down debt as well as reducing its debt to EBITDA ratio to 3 per cent by 2025.
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