Adani raises $1.4 billion from stake sale in 3 companies; $9 billion raised in 4 years


Billionaire Gautam Adani has raised $1.38 billion ( ₹11,330 crore) from stock sales in three group firms, bringing the total amount raised over the past four years to USD 9 billion as the conglomerate attracts interest from a variety of investors.

In a statement, the ports-to-energy conglomerate said it “is committed to raising capital to fulfill its 10-year roadmap of the transformative capital management program, which was formulated in 2016 to execute the plans for various portfolio companies.”

“In the most recent instance, Adani family has raised USD 1.38 billion ( ₹11,330 crore) through stake sale in the three portfolio companies – Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Transmission Ltd,” it said.

“This ensures higher capital availability at the group level, for growth as well as near-term commitments of both debt and equity for the portfolio companies over the next 12-18 months.”

Additionally, as the firm works to recover from claims of fraud made by a US short-seller, the three portfolio companies have secured board approval for main issuances through a share sale to investors.

Additionally, the three portfolio businesses have obtained board clearance for major issuances through a share sale to investors as the firm attempts to recover from allegations of fraud made by a US short-seller.

This occurs five months after the Hindenburg report caused Adani Enterprises to cancel a ₹20,000 crore follow-on public offering (FPO).

The corporation gave subscribers their money back even though the deal had been fully subscribed.

Upon publishing a damaging report in January accusing Adani Group of accounting fraud and stock price manipulation, US short-seller Hindenburg Research set off a stock market meltdown that, at its worst, had destroyed roughly USD 145 billion from the conglomerate’s market worth.

Adani Group has refuted all allegations made by Hindenburg and is devising a strategic plan to regain confidence in the market. This plan includes revising its ambitions, discontinuing acquisitions, pre-paying debts, and reducing spending on new projects. The group has sold shares to GQG Partners, a leading US-based global equity investment firm, in two tranches since May, raising USD 1.38 billion. Another stake sale in March resulted in the full prepayment of margin-linked financing.

Adani Group has conducted investor roadshows, made early debt repayments, and intends to slow down the pace of project expenditure. Over the past four years, the group has successfully raised over USD 9 billion for its core infrastructure portfolio. Adani Group’s listed entities, including Adani Ports and Special Economic Zone Limited (APSEZ), Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL), Adani Total Gas Limited (ATGL), and Adani Enterprises Limited (AEL), have attracted investments from prominent entities such as Qatar Investment Authority (QIA), TotalEnergies (TTE), International Holding Company (IHC), and GQG Partners, along with several other co-investors.

These investments demonstrate the confidence of global investors in the strength of the group’s businesses and its commitment to high governance standards. Adani Group’s subsidiaries, AEL, AGEL, and ATL, are engaged in infrastructure sectors such as airports, green hydrogen, renewable power generation, power transmission, distribution, and smart metering. These businesses play a crucial role in decarbonizing industries, achieving energy self-sufficiency, and integrating renewable energy into power grids for a sustainable future.