Promoter entities raise $1 bn by selling shares in Adani Green Energy, AEL

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Adani Group Promoter Entities sold part of their stake in Adani Green Energy and Adani Enterprises to raise $1 billion.

Banking sources said the promoters would use the proceeds to prepay debts.

About 48 million shares, or 3 percent of total equity, were traded in Adani Green, the bankers said, and 1.6 percent of shares, or 18 million shares, in AEL were sold via syndicated deals to several investors. Total shares sold worth Rs.8,542 crore.

AGEL shares were trading slightly lower at 943 rupees per share, while AEL shares were trading down 5 per cent at 2,393 rupees per share.

The promoters decided to reduce debt, both at the promoter level and at the company level, after US short seller Hindenburg Research made allegations against the company which sent its share prices down from their peak. The Adani group denied the accusations and returned the shares.

To date, the promoters have raised $2.65 billion by selling stock and prepaid debt. Listed companies are also deleveraging and have made several acquisitions to maintain cash flow.

A company official said that the group will refinance its one-year loans obtained for the purchase of cement by the end of the year when this period expires. “We will replace one-year term loans with three-year loans, and talks are ongoing with bankers,” said an official, who requested anonymity.

The official said some of the group’s companies such as Adani Ports have already started buying back bonds and will buy back loans in four more tranches next year.

Banks took a positive view of promoters who sell shares and pay debts in advance. The cash balance in the listed portfolio is now over $4.75 billion or Rs.40,351 crore. AEL’s other businesses including mining and trading accounted for 9.6 percent of EBITDA. Total EBITDA earned by Adani companies increased by 36% to Rs.57,219 crore in FY23.

Among the group companies, the flagship new companies of Adani Enterprises now account for half of AEL’s profits.

This was boosted by the increase in airport passenger traffic, which doubled to reach 74.8 million passengers. Solar module volumes increased by 13% to 1.3 GW. The company completed three road projects during the year; Its data center projects are nearing completion, according to a bankers’ presentation.