Adani Group Raises $1.38 Billion Through Stake Sale in Three Companies

10 Jul 2023 , 10:02 AM

Gautam Adani, the billionaire behind Adani Group, has accomplished a remarkable feat by raising $1.38 billion (Rs 11,330 crore) through stake sales in three of the conglomerate’s companies.

This recent successful round of stake sales contributes to the impressive total capital raised by Adani Group, which now stands at $9 billion over the span of four years. The conglomerate’s ability to generate interest from a diverse range of investors has been a key factor in this achievement.

The primary objective of Adani Group is to realize its 10-year roadmap for the transformative capital management program, which was initially devised in 2016 to facilitate the execution of plans for its portfolio companies. 

The recent stake sale of $1.38 billion involves Adani Enterprises Ltd, Adani Green Energy Ltd, and Adani Transmission Ltd, ensuring higher capital availability for growth and near-term commitments of debt and equity over the next 12-18 months.

Additionally, the three portfolio companies have received board approval for primary issuances through a share sale to investors as part of Adani Group’s comeback strategy after facing allegations of fraud.

Adani Enterprises Ltd plans to raise Rs 12,500 crore, Adani Transmission aims to raise Rs 8,500 crore, and the renewable energy firm intends to raise Rs 12,300 crore through share sales to investors.

Adani Group is addressing concerns about cash flows and borrowings by pre-paying debt, scaling back spending on new projects, and denying all allegations of accounting fraud and stock price manipulation.

Promoters have sold shares to GQG Partners, a leading US-based global equity investment boutique, with a total of $1.38 billion raised in the latest stake sale and $1.87 billion in a previous sale in March 2023.

The group has embarked on a capital transformation journey, attracting over $9 billion in investments from long-term global investors in its infrastructure portfolio.

Adani Group’s portfolio companies span across energy, utility, transport, and logistics sectors, including entities such as Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), and Adani Transmission Limited (ATL).

The conglomerate has secured investments from notable entities like Qatar Investment Authority (QIA), TotalEnergies (TTE), International Holding Company (IHC), GQG Partners, and other co-investors.

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