Adani Group In Talks With Bankers To Raise Cash Via Local Bonds

Two Adani Group companies are reportedly in discussions with merchant bankers to raise up to ₹1,500 crore each through local currency bonds.

What Happened: Adani Airport Holdings and Adani Ports and Special Economic Zone are anticipated to be the first to tap the market, with bond offerings ranging from ₹1,000 crore to ₹1,500 crore, Reuters reported, citing sources. The bonds, with maturities of up to five years, are projected to be issued in September, the sources added.

Adani Enterprises and Adani Electricity Mumbai are also said to be exploring potential debt issuance.

They also said that the conglomerate is reportedly assessing investor sentiment before proceeding and plans to launch the offerings when market conditions are favourable. The finalisation of these fundraising efforts could commence after the Securities and Exchange Board of India releases its findings on the Hindenburg allegations, expected by Monday.

Why It Matters: This move marks the conglomerate’s potential return to the domestic bond market following accusations of financial misconduct raised earlier this year by U.S. short-seller Hindenburg Research, which led to a decline in the group’s stock prices. The Gautam Adani-led group has firmly denied the allegations.

It had previously been reported that the conglomerate is looking to raise ₹15,000 crore from domestic bond sales as the company looks to cash in on higher investor confidence.

Media reports have also suggested that the Adani Group was looking to sell its stake in Adani Wilmar, though the group has declined to comment on the matter.

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