NEW DELHI: The Adani Group on Sunday said it raised $9 billion in four years from leading global investors. In a statement, it said the Group is committed to raising capital to fulfil its 10-year roadmap of the transformative capital management program, which was formulated in 2016 to execute the plans for various portfolio companies.
Recently, the Adani family has raised $1.38 billion through a stake sale in the three portfolio companies - Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Transmission Ltd(ATL). “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,” the company said.
ATL is the largest private energy solutions player in India with a presence in power transmission and distribution and an increasing focus on smart metering. In addition, the three portfolio companies have also received board approval for primary issuances through a share sale to investors as the group continues to build on a comeback strategy to emerge from allegations of fraud levelled by a US short-seller. “A similar stake-sale by the family in March 2023 aggregating to $1.87 billion resulted in full prepayment of margin-linked, share-backed financing and created flexibility in a rising rate environment to equitize debt capital as and when due,” the statement said.
Adani Enterprises Ltd, the group’s flagship firm, plans to raise Rs 12,500 crore through share sale to investors while electricity transmission company Adani Transmission another Rs 8,500 crore. Its renewable energy firm plans to raise R12,300 crore.
This comes five months after Adani Enterprises was forced to abort a Rs 20,000 crore follow-on public offering (FPO) in the wake of the Hindenburg report. The offer was fully subscribed but the company returned the money to subscribers.
US short-seller Hindenburg Research in January released a report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about $145 billion in the conglomerate’s market value at its lowest point. Adani Group had denied Hindenburg allegations.