This is one of the several recent stake sales by billionaire Gautam Adani aimed at cutting promoter-level debt and releasing stock pledges. At current market prices, around ₹31,095 crore ($3.75 billion) is required by the promoters to release the shares pledged by the promoters in five key group firms. Additionally, shares worth $7.18 billion or ₹59,436 crore and ₹2,532 crore are pledged by the promoters in Ambuja Cements Ltd and ACC Ltd.
QIA has been a significant investor in the Adani Group. In 2020, it invested ₹3,220 crore to acquire a 25.1% stake in Adani Electricity Mumbai Ltd, a part of the group’s energy distribution arm, Adani Transmission Ltd.
According to regulatory filings, Infinite Trade and Investment Ltd, an Adani Group promoter, cut its stake from 3.37% to 2.83% in Adani Green. In a series of block deals, Infinite Trade and Investment sold 42.6 million shares of Adani Green to QIA at ₹920 per share, worth around $474 million. An additional 2.28 million shares were sold by the Adani group promoter to other investors. Shares of Adani Green fell 4.7% to ₹965 on BSE.
On 23 May, Mint first reported that Adani Green is in talks with global fund managers to raise $500-750 million as India’s largest renewables company revives its capex plans after the Hindenburg setback in January.
“The fundraising will include the sale of new shares, as well as promoter shares worth 3-4% held by Adani family entities, including group founder Gautam Adani (on behalf of Shantilal Bhudermal Adani Family Trust),” the Mint report said.
The trust owns 20.76% in Adani Green, while Adani Trading Services Llp and Infinite Trade And Investment Ltd hold 29.94% and 6.28%, respectively, as of June end.
The Adani group’s promoters have been monetizing stakes in several firms over the past three months. US-based boutique asset management firm GQG Partners Llp has purchased around $3 billion worth of shares from the promoters in various Adani Group firms.
“Proceeds from the latest share sale are likely to be used by the promoters to lower promoter-level debts, pay off the creditors to release shares that are pledged by the promoters and fund capex plans,” a person familiar with Adani Group’s plans said, on condition of anonymity.
At least 2.16% of Adani Green is currently pledged by the promoters. Around 18.8% of Adani Power Ltd, 2.86% of Adani Transmission Ltd, 0.5% of Adani Enterprises Ltd, 63.15% of Ambuja Cements Ltd, around 6.64% of ACC Ltd and 2.53% of Adani Ports and SEZ Ltd are pledged by Adani Group promoters.
At current market prices, to release share pledges, the promoters would require ₹989 crore in Adani Enterprises, ₹4,326 crore in Adani Ports, ₹19,824 Crore in Adani Power, ₹2,654 crore in Adani Transmission, and at least ₹3,302 crore in Adani Green.
An Adani Group spokesperson declined to comment on the fundraising. An email query did not elicit any response till press time. An email query sent to INQ Holding too remained unanswered.
On 17 April, Mint reported that Adani group paid back at least $3 billion in the March quarter, lowering promoter-group pledges and settling bonds with three domestic mutual funds to ease the concerns of investors and creditors. This came after GQG Partners invested $1.87 billion in four Adani Group firms in March.
In its annual report, Adani Group said it raised investments of almost $9 billion in the past four years, including from some of the world’s leading investors such as QIA, Total Energies, International Holding Co. (IHC) and GQG Partners.
Adani Green, which reported a 51% profit growth to ₹323 crore for the quarter ended June from a year earlier, expanded its operational capacity by 43% to 8,316MW through the addition of 1,750MW solar-wind Hybrid, 212 MW solar, and 554 MW wind power plants over the past year.
The company aims to grow its renewable power capacity to 45 GW by 2030 through solar, wind and solar-wind hybrid solutions as major contributors.
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Updated: 08 Aug 2023, 12:20 AM IST