Days after US-based GQG Partners picked up stakes in four Adani Group firms for Rs 15,446 crore, the conglomerate has lined up more road shows to shore up investor confidence.
The stake purchase by the boutique investment firm marked the first major investment in billionaire Gautam Adani’s conglomerate since a short-seller’s critical report resulted in seven of the conglomerate’s listed firms losing about $135 billion in market value.
In the Jan. 24 report, US-based Hindenburg Research noted high debt and alleged improper use of offshore tax havens and stock manipulation, which Adani denied, but led to a staggering $135-billion loss in market capitalisation for the listed Adani stocks.
Adani Group will hold road shows this month in London, Dubai and several cities in the United States, according to a document seen by Reuters.
The meetings are scheduled for Dubai on March 7, London on March 8 and several US locations between March 9-15, the document showed.
The Adani Group, whose mostly debt-fueled breakneck expansion saw gross debt doubling in four years, has almost $2 billion worth of foreign-currency bonds coming up for repayment in 2024, according to a presentation the conglomerate made to investors, reported PTI on Sunday.
The apples-to-airport conglomerate borrowed over $10 billion in foreign currency bonds between July 2015 and 2022 across group companies. Of this, $1.15 billion of bonds matured in 2020 and 2022.
There are no maturities in 2023 but three issuances – $650 million by the ports arm APSEZ and two of renewable energy unit Adani Green Energy Ltd ($750 million and and $500 million – are due for payment in 2024. It remains to be seen whether management provides an update on a refinancing plan for Adani Green Energy’s $750-million bond due in September 2024.
Adani group management, including group chief financial officer Jugeshinder Singh, last month held roadshows in Singapore and Hong Kong to reassure investors that the company’s finances are under control.
Executives told investors they will address upcoming debt maturities including by potentially offering private placement notes and using cash from operations.
Adani group’s gross debt has grown from Rs 1.11 lakh crore in 2019 to Rs 2.21 lakh crore in 2023, according to the presentation made to investors last month. After including cash, the net debt was Rs 1.89 lakh crore in 2023.
There are no foreign currency bond maturities in 2025 but have $1 billion of repayments due in 2026.
Last week, SB Adani Family Trust has cumulatively sold about 21 crore in four of the Adani Group companies through the open market. GQG Partners bought 2.84 crore shares of Adani Transmission on Thursday at Rs 668.4 apiece aggregating to Rs 1,898 crore, 3.87 crore shares of Adani Enterprises Ltd at Rs 1,410.86 apiece aggregating to Rs 5,460 crore, 8.86 crore shares of Adani Ports at Rs 596.2 apiece aggregating to Rs 5,282 crore, 5.56 crore shares of Adani Green Energy at Rs 504.60 apiece aggregating to Rs 2,806 crore.
With inputs from agencies