The Adani Group is reportedly in advanced discussions with prominent sovereign funds based in West Asia to secure funding of up to $2.6 billion. This potential move to raise funds is part of the conglomerate’s expansion plans for airport infrastructure and green hydrogen projects, Business Standard reported.
While the timeline for the fundraising has yet to be decided, analysts speculate that the initiative could hit the market by mid-2024. As part of the funding strategy, Adani Enterprises, the group’s flagship entity, may consider diluting its stake in either the airport-holding firm or the green hydrogen business to accommodate the participation of these sovereign funds who are keen to put money in India’s infrastructure sector, the report said citing unnamed sources.
Adani Group has embarked on a series of roadshows in key financial hubs such as London, Dubai, and Singapore. During these engagements, Adani executives have been briefing potential investors on the company’s future endeavors.
The group expects reaching Ebitda of Rs 80,000 crore in this financial year ending on March 31.
In presentations to potential investors, the group has underscored recent rating upgrades by global rating agencies such as Moody’s and S&P. These agencies have not only reaffirmed ratings for all Adani group companies but have also restored a ‘stable outlook’ for five entities. Fitch Ratings has similarly upheld the ratings of all issuers within the Adani conglomerate, maintaining a stable outlook.
This comes on the heels of a resurgence for the Adani Group, which weathered significant turbulence after a damning report by Hindenburg Research in January 2023. The report charged the ports-to-power conglomerate of stock manipulation and accounting fraud, which led to a substantial decline in billionaire Gautam Adani’s personal wealth, erasing nearly USD 60 billion.
Despite these challenges, the group has demonstrated resilience, attracting substantial investments from entities such as GQG Partners, Qatar Investment Authority (QIA), and French energy giant TotalEnergies. GQG Partners acquired stakes worth almost USD 4.3 billion across five Adani group companies between March and August, while QIA and TotalEnergies collectively invested USD 770 million in Adani Green Energy Ltd.
The promoters infused USD 4.6 billion into various financial endeavors, including loan repayments, cement acquisitions, and bolstering green investments.
Source: Economic Times