Three companies controlled by Adani Group founder Gautam Adani are considering a fundraising that could draw as much as US$5 billion, people familiar with the matter said, in a pivotal test of investor confidence in the tycoon’s empire less than four months after a scathing short-seller report plunged it into crisis.
Adani Enterprises Ltd, the flagship, as well as Adani Green Energy Ltd and Adani Transmission Ltd, could raise US$3 billion to US$5 billion to bolster the businesses, the people said, asking not to be identified as the information is private.
The boards of the three firms would meet today to consider raising funds through the sale of shares or other securities, exchange filings on Wednesday showed.
Photo: REUTERS
They did not disclose how much they intend to raise or who they are working with for potential deals. Adani Group stocks, which climbed on Thursday, were largely lower in yesterday’s early trading in Mumbai, India, as global index provider MSCI Inc said it would remove two companies from its India gauge.
The companies’ boards usually approve fundraising plans to enable management to quickly tap markets when opportunities arise.
Discussions are underway and there is no certainty that the companies would announce a sum they are looking to raise after today’s board meetings, the people said.
A representative for the Adani Group declined to comment on the fundraising details.
Any move by the Adani Group companies to tap a broader group of investors for funds could backfire if the market is not convinced that the cloud hanging over the stocks has lifted.
Despite the coal-to-cement conglomerate denying fraud allegations made by Hindenburg Research in January, the broadside triggered a weeks-long stock rout that wiped out more than US$100 billion of market value, forcing the billionaire to scrap a US$2.4 billion share sale by his flagship firm.
MSCI said that two Adani Group companies — Adani Transmission and Adani Total Gas Ltd — would be excluded from its India gauge at the end of this month.
Both stocks fell as much as 5 percent yesterday. Adani Enterprises erased its early gains and was trading 0.6 percent lower in Mumbai.
Removal from MSCI’s India gauge could lead to a combined outflow of about US$390 million from the two stocks, Smartkarma independent equities analyst Brian Freitas said.
Freitas, who predicted this exclusion, said the passive selling would keep the two stocks under pressure.
“Especially Adani Transmission, where there could also be some fundraising,” he added.
The Adani family in early March raised about US$1.9 billion selling shares in four firms to US investment firm GQG Partners, held investor roadshows and prepaid debt as they raced to bolster confidence and repair the damage from short seller’s accusations.
Adani company board meetings every year include proposing enabling resolutions to raise capital, which is part of their annual financial planning, the people said.
An analysis by Bloomberg of exchange filings showed that Adani Enterprises and Adani Transmission have sought board approval for fundraising every year in April or May since at least 2019.
Adani Green Energy secured such permission every year except in 2021, the data show.
The three firms raised almost US$2 billion from Abu Dhabi-based International Holding Company PJSC in April last year.
When an apartment comes up for rent in Germany’s big cities, hundreds of prospective tenants often queue down the street to view it, but the acute shortage of affordable housing is getting scant attention ahead of today’s snap general election. “Housing is one of the main problems for people, but nobody talks about it, nobody takes it seriously,” said Andreas Ibel, president of Build Europe, an association representing housing developers. Migration and the sluggish economy top the list of voters’ concerns, but analysts say housing policy fails to break through as returns on investment take time to register, making the
‘SILVER LINING’: Although the news caused TSMC to fall on the local market, an analyst said that as tariffs are not set to go into effect until April, there is still time for negotiations US President Donald Trump on Tuesday said that he would likely impose tariffs on semiconductor, automobile and pharmaceutical imports of about 25 percent, with an announcement coming as soon as April 2 in a move that would represent a dramatic widening of the US leader’s trade war. “I probably will tell you that on April 2, but it’ll be in the neighborhood of 25 percent,” Trump told reporters at his Mar-a-Lago club when asked about his plan for auto tariffs. Asked about similar levies on pharmaceutical drugs and semiconductors, the president said that “it’ll be 25 percent and higher, and it’ll
NOT TO WORRY: Some people are concerned funds might continue moving out of the country, but the central bank said financial account outflows are not unusual in Taiwan Taiwan’s outbound investments hit a new high last year due to investments made by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other major manufacturers to boost global expansion, the central bank said on Thursday. The net increase in outbound investments last year reached a record US$21.05 billion, while the net increase in outbound investments by Taiwanese residents reached a record US$31.98 billion, central bank data showed. Chen Fei-wen (陳斐紋), deputy director of the central bank’s Department of Economic Research, said the increase was largely due to TSMC’s efforts to expand production in the US and Japan. Investments by Vanguard International
WARNING SHOT: The US president has threatened to impose 25 percent tariffs on all imported vehicles, and similar or higher duties on pharmaceuticals and semiconductors US President Donald Trump on Wednesday suggested that a trade deal with China was “possible” — a key target in the US leader’s tariffs policy. The US in 2020 had already agreed to “a great trade deal with China” and a new deal was “possible,” Trump said. Trump said he expected Chinese President Xi Jinping (習近平) to visit the US, without giving a timeline for his trip. Trump also said that he was talking to China about TikTok, as the US seeks to broker a sale of the popular app owned by Chinese firm ByteDance Ltd (字節跳動). Trump last week said that he had
RSS