Adani group in advance talks to raise $2.6 billion; may trim stake in airport, green hydrogen units

The Adani Group is reportedly in advanced discussions with prominent sovereign funds based in West Asia to secure funding of up to USD 2.6 billion. This potential fundraising move is part of the group's expansion plans for airport infrastructure and green hydrogen projects.

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 the infrastructure sector of India.

The Adani Group has embarked on a series of roadshows in key financial hubs such as London, Dubai, and Singapore. During these engagements, Adani executives briefed potential investors on the company's future projects.

The group expects to reach an EBITDA of Rs 80,000 crore in this financial year ending March 31.

In presentations to potential investors, the group highlighted recent rating upgrades by global rating agencies such as Moody's and Standard & Poor's. These agencies not only reaffirmed the ratings of all Adani group companies but also restored the 'stable outlook' of five entities. Fitch Ratings also maintained its ratings for all Adani Group issuers, while 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 with stock manipulation and accounting fraud, which led to a significant decline in billionaires. Gautam Adani's wealth, erasing nearly USD 60 billion.

Despite these challenges, the group has demonstrated resilience, attracting significant investments from entities such as GQG Partners, Qatar Investment Authority (QIA), and French energy giant TotalEnergies. GQG Partners took stakes worth about USD 4.3 billion in five Adani group companies between March and August, while Qatar Investment Authority and TotalEnergies together 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.

Also Read: GBC@IV: PM Modi to launch over 14,000 projects worth Rs 10 lakh crore in UP