Adani in talks for $2-2.5 billion stake sales in 3 Group companies

Mumbai: Adani Group is in discussions with potential investors to raise $2-2.5 billion via share sales in Adani Enterprises, Adani Transmission and Adani Green Energy, said people aware of the matter. This will be the first bid by the group to raise funds after having scrapped the $2.5-billion Adani Enterprises follow-on public offer (FPO) in February in the wake of the Hindenburg Research report. The fundraise will be a primary equity infusion that will be used for debt payment and long-term capital expenditure, said the people cited above. "The total quantum of stake sale is still under consideration," said a person close to the group. "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 Some investors participated in the Adani Enterprises FPO in February that was subsequently withdrawn and expect to participate in the upcoming round."Investors that participated in the FPO include Abu Dhabi's IHC Group, which had committed $400 million, and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. 100172009 Enabling Resolution On Wednesday, the three group companies informed the stock exchanges that their boards will meet on May 13 to consider raising funds via the sale of shares or other securities."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."Adani Enterprises shares have risen 66% from the low they hit after the Hindenburg Research report in late January. Adani Green shares have almost doubled from a low of Rs 462 to Rs 914, while Adani Transmission shares have gained 42% since then. However, Adani Enterprises, Adani Green and Adani Transmission are trading 53%, 66%, and 78% below their respective yearly highs.Companies that want to raise funds can issue various instruments to investors and meet their capital requirements from time to time based on Sebi guidelines. Adani Group didn't respond to queries. Adani Enterprises called off its share sale in February after group stocks plunged in the wake of the Hindenburg Research report that accused the conglomerate of engaging in "brazen stock manipulation" and an "accounting fraud scheme." The Adani Group has rejected the report and denied any wrongdoing.Adani Enterprises said it scrapped the FPO to protect investors. The Adani Group's recent presentations to investors showed gross debt stood at Rs 2.27 lakh crore at the end of March - 39% of this in bonds, 29% as loans from foreign banks and 32% from domestic lenders. The group has also told investors recently that it intends to grow its ebidta by 20% year-on-year.

Adani in talks for $2-2.5 billion stake sales in 3 Group companies
Mumbai: Adani Group is in discussions with potential investors to raise $2-2.5 billion via share sales in Adani Enterprises, Adani Transmission and Adani Green Energy, said people aware of the matter. This will be the first bid by the group to raise funds after having scrapped the $2.5-billion Adani Enterprises follow-on public offer (FPO) in February in the wake of the Hindenburg Research report. The fundraise will be a primary equity infusion that will be used for debt payment and long-term capital expenditure, said the people cited above. "The total quantum of stake sale is still under consideration," said a person close to the group. "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."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. 100172009 Enabling Resolution On Wednesday, the three group companies informed the stock exchanges that their boards will meet on May 13 to consider raising funds via the sale of shares or other securities."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."Adani Enterprises shares have risen 66% from the low they hit after the Hindenburg Research report in late January. Adani Green shares have almost doubled from a low of Rs 462 to Rs 914, while Adani Transmission shares have gained 42% since then. However, Adani Enterprises, Adani Green and Adani Transmission are trading 53%, 66%, and 78% below their respective yearly highs.Companies that want to raise funds can issue various instruments to investors and meet their capital requirements from time to time based on Sebi guidelines. Adani Group didn't respond to queries. Adani Enterprises called off its share sale in February after group stocks plunged in the wake of the Hindenburg Research report that accused the conglomerate of engaging in "brazen stock manipulation" and an "accounting fraud scheme." The Adani Group has rejected the report and denied any wrongdoing.Adani Enterprises said it scrapped the FPO to protect investors. The Adani Group's recent presentations to investors showed gross debt stood at Rs 2.27 lakh crore at the end of March - 39% of this in bonds, 29% as loans from foreign banks and 32% from domestic lenders. The group has also told investors recently that it intends to grow its ebidta by 20% year-on-year.