Adani to raise $10 billion from global investors

Adani family members and top group executives held discussions with several potential investors, two people with direct knowledge of the Adani Group and the plans of the Adani family said on condition of anonymity.

“They (the promoters and top management of the Adani Group) were in Singapore last week. Earlier, they met with different West Asian and American investors. The conversation is still on. Hopefully, raising $10 billion should be easy. The only issue is that since the capital raising is through equity sale and the shares of most of the Adani firms are rising steadily, the pricing of the deals will be critical,” said one of the two people.

“The Adani Group can raise capital either at the group level or at the promoter-family level or both. They are discussing the structure,” the person said.

According to the second person, the capital would be raised through several stages and most likely through stake sale in Adani group firms or entities linked to the promoter group.

Emails sent to Adani Group spokesperson did not elicit any response. Spokesmen for GIC and Temasek declined to comment. “GIC does not comment on individual deals,” a GIC spokesperson said. Similarly, a Temasek spokesperson said the company “does not comment on market speculation and rumours”.

The capital raise is primarily aimed at funding the expansion plans of the group’s cement, ports, green energy and fast-growing consumer goods businesses.

“The members of the Adani group have met several investors in the last fortnight to raise capital,” another person said.

“Given the steady growth (in the shares of Adani companies), investors may look for smaller stakes. But strategic players may be willing to come in joint ventures or at a premium, especially in the clean energy and cement business,” the first person said.

In a speech on September 27, Gautam Adani said, “We will invest over $100 billion in capital over the next decade. We have earmarked 70% of this investment for the energy transition sector. We are already the world’s largest We are a solar player and intend to do much more. We have a commitment to invest $70 billion in an integrated hydrogen-based value chain.”

In addition to the group’s 20GW renewable portfolio, the new business will be augmented by another 45GW of hybrid renewable energy generation, spread over 100,000 hectares – an area 1.4 times that of Singapore, leading to the commercialization of 3 million tonnes of green hydrogen. Adani said in his speech.

Adani Group is also building a 10GW silicon-based photovoltaic value chain that will be backward-integrated from raw silicon to solar panels, a 10GW integrated wind turbine manufacturing facility and a 5GW hydrogen electrolyzer factory.

Adani said in his speech that the group wants to be one of the least expensive producers of green electrons, and then, the least expensive producers of green hydrogen.

Adani Group is the largest airport operator in India, with 25% passenger traffic and 40% air cargo. The group operates the largest ports and logistics company in India with a 30% market share.

After acquiring Ambuja Cements and ACC Ltd. for over $6.5 billion, Adani Group became the second largest cement manufacturer in the country. The combined market capitalization of the Adani Group of companies is over $260 billion.

Adani said in a speech in Rajasthan on Friday that his group has invested more Implementation of additional 10,000 MW power generation with an investment of Rs 35,000 crore and in several sectors in Rajasthan 50,000 crore in the next five years, is underway.

After the acquisition of ACC and Ambuja Cements, Adani already has three cement plants and limestone mining assets.

“A significant part of our capacity expansion will continue to happen in Rajasthan. We anticipate making another investment 7,000 crore to double our cement manufacturing capacity in the state,” Adani said in his Friday speech.