Adani Group is in discussions to raise around $500 million through dollar bonds, its first issuance since a report by US short-seller Hindenburg Research last year raised concerns about the group’s ability to refinance borrowings.
According to a Bloomberg report, solar energy producer Adani Green Energy is in talks with a group of foreign banks to execute the planned transaction. The sale is yet to be finalized and the terms are subject to changes.
Last year, Hindenburg Research report accused the Adani Group of fraud and stock manipulation leading to close scrutiny of the group’s finances. Within a month of Hindenburg’s report, Adani Group lost over Rs 12 lakh crore in market value and the majority of the stocks touched back-to-bank lower circuits or fresh 1-year lows.
After the allegations were made, the discussions to refinance debt taken out to acquire Ambuja Cements Ltd and ACC Ltd were suspended. However, later in the year, Adani successfully concluded the $3.5 billion funding package.
The ports-to-power conglomerate has reduced debt, pared founders’ share pledges, and bagged major projects over the last year, helping to revive investor confidence in the group. In addition, Adani Group also received fresh equity capital from marquee investors including GQG Partners LLC and Qatar Investment Authority.
Adani Group’s flagship company Adani Enterprises announced a net profit of Rs 1,888 crore in the December 2023 quarter, up more than two times compared to Rs 820 crore in the year-ago period. Revenue from operations jumped 7 per cent to Rs 28,827 crore in the reported quarter.