Adani’s big sale: The Gautam Adani-led promoter group could sell up to 3 per cent of its stake in Ambuja Cement, which would represent a fundraise of about $500 million as part of a routine portfolio rebalancing, according to a PTI report.
The company would sell around Rs 7 crore worth of shares, equivalent to 2.84% of the company, for Rs 4,198 crore, which would translate into an offer per share of Rs 600, a 5% discount to Thursday’s closing price of Rs 632.90 on the Boston Stock Exchange.
Currently on a par with Berkshire Hathaway, the $125 billion Adani Group periodically rebalances its holdings among its ten listed companies to maintain the desired level of stakes in companies.
This rebalancing provides flexibility for any acquisition and helps meet the needs of investors. Long-term investors who own shares in the group wish to sell parts of their holdings, and promoters can take advantage of the option to buy back the shares as needed.
The proposed stake sale in Ambuja Cement has nothing to do with debt reduction; it is essentially a strategic move.
The group has sufficient liquidity and is also covering more than 30 months of debt payments. The cash balance at the end of June was 24.8 percent of the total debt of 2.41 trillion rupees, compared with 17.7 percent a year ago.
Adani Group posted strong numbers for the June quarter, with pre-tax profit up 33 per cent, driven by its core infrastructure, including solar and wind power, and rapid growth in emerging businesses.
EBITDA in April-June rose nearly 33 per cent to Rs 22,570 crore, while net profit rose over 50 per cent to Rs 10,279 crore in a very strong start to FY24-25.
(With PTI inputs)
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