Adani Group is reportedly looking to sell parts of its “non-core” real estate holdings as it looks to raise cash to fund new real estate projects it is taking up.
What Happened? The Gautam Adani-led company is looking to monestise a number of its real estate holdings, including Inspire BKC and the real estate holdings of ACC Ltd and Ambuja Cements, the Economic Times reported, citing sources.
Sources told the daily that talks around the sale of Inspire BKC, a 10-storey standalone tower in Mumbai’s business district, are ongoing with potential buyers, including Brookfield Asset Management. The source added that the Adani Group expects a non-binding term sheet soon with a tentative valuation of ₹650 crore.
The company also reportedly aims to monetise around 16 acres owned by ACC in Thane, from which it expects up to ₹500 crore.
The funds raised from any asset sales will likely be funnelled into the group’s investments in new real estate projects. In 2022, the company won the bid to modernise Dharavi, one of the world’s largest slums, with an initial investment of about ₹5,069 crore. The firm will have to eventually have to pump in ₹20,000 crore into the project.
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The Adani group of companies have been under the pump since US short-seller Hindenburg Research accused the ports-to-energy conglomerate of serious financial misconduct, leading to a collapse in their share prices.
However, shares of Adani companies surged on Monday after a Supreme Court-appointed expert committee found on Friday that there was no evidence of stock price manipulation by the group. Moreover, the committee said that market regulator Securities and Exchange Board of India (SEBI) had made no regulatory failings regarding allegations into the firm.
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