Adani Group Units Likely Mulls To Raise Rs 1,500 Crore Each Via Indian Bonds Market: Report

Conglomerate Adani Group-backed two units namely Adani Ports and Adani Airport Holdings are likely planning to raise up to Rs 1,500 crore each through local currency bonds. As per Reuters report, the units are in talks with merchant bankers for the fundraising. Gautam Adani-backed port-to-energy empire is planning to raise around Rs 10,000 crore in the financial year 2023-24.

Bankers told Reuters that Adani Airport Holdings and Adani Ports and Special Economic Zone may tap the market first, with offerings of around 10-15 billion rupees. One banker directly familiar with the matter revealed that these units are planning to issue 5-year tenure bonds by September.

It needs to be noted that these bond issues are part of the group's tentative return to the Indian bond markets after a hiatus since January which was sparked by Hindenburg's bombshell report. The US short seller accused Adani Group of brazen stock manipulation and accounting fraud scheme over the course of decades --- which led to billions of dollars of market rout and extreme selling pressure in Adani stocks. However, Adani Group has denied the allegations.

However, no official announcement has been made on the development. While Adani Group did not respond to Reuters requests for comment on the development.

Notably, Goodreturns.In cannot confirm the development.

After the Hindenburg row, the latest to step into the bonds market was Adani Enterprises in July with a Rs 1,250 crore issue at an interest cost of 10%.

Meanwhile, Adani Ports' last bond issue was Rs 1,000 crore at a coupon rate of 6.25% for a 3-year maturity period in October 2021.

On BSE, Adani Ports shares ended at Rs 800 apiece, down by 0.4%. The market cap of the company stood at Rs 1,72,811.12 crore.

Incorporated in August 2019, Adani Airport Holdings is an unlisted public company of the Adani Group.

In another development, on Thursday, MSCI decided to be 'status quo' on Adani Group and its associated securities due to uncertainty with the free float in these shares.

In its latest notification, MSCI said, "In light of continued uncertainty with the free float of Adani Group and associated securities within the MSCI ACWI IMI Indexes, MSCI will not implement any changes in the Foreign Inclusion Factor (FIF) or Number of Shares (NOS) for the related securities as part of the August 2023 Index Review and until otherwise announced."

It added, "Also, until otherwise announced, MSCI will review the treatment of non-neutral corporate events for the affected securities on a case-by-case basis and potentially defer their implementation. The treatment of any such non-neutral corporate event would be announced to all clients with advance notice through regular Index announcements. For the avoidance of doubt, MSCI will continue implementing any neutral corporate events including ones requiring the application of a Price Adjustment Factor (PAF)."

In the June 2023 quarter, Adani Ports posted a consolidated net profit of Rs 2,115 crore, up by 83% YoY, while revenue from operations stood at Rs 6,248 crore rising by 24% YoY. EBITDA also saw double-digit growth of 80% YoY.