Adani Group in talks to raise $2-2.5 billion through stake sale

12 May 2023 , 10:44 AM

Three companies of Adani conglomerate, Adani Enterprises, Adani Transmission and Adani Green Energy are in talks with potential investors to raise $2-2.5 billion via stake sale, as per multiple reports.

Post Hindenburg Research report turmoil, this will be the first time when the group is looking for fundraise after having scrapped the $2.5-billion Adani Enterprises follow-on public offer (FPO) in February. 

“To start with, the group will raise about $1 billion through the issuance of fresh equity in a private placement of shares,’ cited one of the sources.

The boards of Adani Enterprises, Adani Green Energy and Adani Transmission will meet this Saturday “to take an enabling resolution’ to raise a total of around $2.5 billion in FY24 and Adani Ports will discuss fundraising plan next week.

“The group is in active discussions with existing and new investors. Some investors participated in the Adani Enterprises FPO in February that was subsequently withdrawn and expect to participate in the upcoming round,” said person close to the group, “however, the total quantum of stake sale is still under consideration.”

Investors that participated in the FPO include Abu Dhabi’s IHC Group, which had committed $400 million, and UK-based Jupiter Fund Management, an existing investor in Adani Group companies, besides prominent family offices and fund houses in India.

‘The boards will consider an enabling resolution, which, after necessary approvals, will allow the companies to explore various fundraise options in the course of the next one year,’ said a second person. ‘The available options include preferential allotment, qualified institutional placements (QIPs) or a rights issue, and the group will decide on each on a case-to-case basis.’