Adani is in talks with global investors to raise $10 billion | Whuff News


Adani family members and top group executives are in talks with several potential investors, two people with direct knowledge of the Adani Group and the Adani family’s plans said on condition of anonymity.

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“They (Adani Group promoters and top management) were in Singapore last week. Earlier, they separately met West Asian and American investors. The talk continues. Hopefully, $10 billion should be easy to come by. The only issue is that since the capital raising is through equity sale and most of Adani’s firm’s shares are rising, the transaction price will be critical,” said one of the two people.

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

The capital will be raised through various stages and most likely through the sale of stakes in Adani Group firms or related entities of the promoter group, according to the second person.

An email sent to an Adani Group spokesperson did not elicit any response. Spokesmen for GIC and Temasek declined to comment. “GIC does not comment on individual offers,” said a GIC spokesperson. Likewise, a Temasek spokesperson said the company “does not comment on market speculation and rumours”.

The capital raising is mainly aimed at financing the expansion plans of cement, ports, green energy and fast-moving consumer goods businesses.

“A member of the Adani Group met with several investors over the past two weeks to raise capital,” the second person said.

“Given the continued rise (of Adani’s shares), investors may look for a small stake. But strategic players may be interested in joint ventures or entry at a premium, especially in the clean energy and cement businesses,” said the first person.

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 space. We are already the largest solar player in the world and intend to do even more. It is our 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 supplemented by another 45GW of hybrid renewable power generation spread over 100,000 hectares—an area 1.4 times that of Singapore, which will lead to the commercialization of 3 million tonnes of green hydrogen, Adani said. in that speech.

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

The group aims to be one of the cheapest producers of green electrons, and after that, the cheapest producers of green hydrogen, Adani said in the speech.

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

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

On Friday, Adani, in a speech in Rajasthan, said that its group had invested more 35,000 crore across various sectors in Rajasthan and implementation of additional power generation of 10,000 megawatts, with an investment of 50,000 crore over the next five years, is underway.

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

“Most of our capacity expansion will continue to take place in Rajasthan. We expect to invest the rest 7,000 crore to double our cement production capacity in the state,” Adani said in its Friday speech.

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