It is the biggest fundraising by the family, which owns businesses ranging from airports to edible oil. The share sale plan is part of a strategy to rebalance the family’s wealth portfolio after share prices of Adani Group companies soared sharply over the past year, the person cited above said on condition of anonymity.
“There is no question of repaying any debt as the family has none. This rebalancing will be done to address the volatility of listed companies,” the source said, adding that a monetisation of 0.5-3% of the promoter’s stake can be expected in any financial year.
“But this time, given that the stocks of most of the Adani Group firms have moved to their 52-week highs, the monetisation will be at the higher end of the spectrum i.e. 3% of the promoter’s portfolio value, which is around ₹30,000 crore.” The value of the family’s stakes in listed companies is more than ₹10 trillion (about $126 billion), the source said.
The immediate plan is to sell shares worth ₹Between Rs 3,000-4,000 crore is being raised in Ambuja Cements Ltd, in which promoters hold 70.3%. US boutique investment firm GQG Partners LLC, led by Rajiv Jain, and at least four other entities, including three large bank-promoted firms, are likely to buy the stake soon in a private placement, the source added.
An Adani Group spokesman declined to comment on the promoter family’s fundraising plan.
As part of the rebalancing strategy, the family will support strategic growth by continuously strengthening the balance sheet, supporting the transactions of those who come as long-term investors to the group’s companies and being in line with global best practices on a par with large international groups.
Adani’s spread
Two weeks ago, a report on India’s most valuable family businesses by Barclays-Hurun India said that the Adani family has emerged as the most valuable first-generation family business in India with a value of ₹15.44 billion.
Apart from the ₹$10 trillion of the value is in publicly traded stocks, the rest of the wealth is held in unlisted companies, spanning real estate and infrastructure to solar, wind power, data centers and defense equipment.
As share prices fell, the promoter family, along with global investors, accumulated shares in Adani Group companies.
In addition, the developers have repaid around $2.55 billion to release a significant portion of their pledges.
The move was attributed to the Adani group’s efforts to allay investor concerns after Hindenburg Research alleged that the group is overleveraged with total debts of ₹2.27 trillion then.
In addition to the promoters’ efforts, a group of global investors including GQG, QIA, IHC and Total Energies invested in Adani Group’s businesses.
On December 5, Adani’s ten listed companies alone contributed nearly 65% of the total market gains. Since then, the stock has been on a rise, creating an opportunity for promoters to monetise part of their stakes.
Listed companies of Adani Group They include flagship companies Adani Enterprises Ltd., Adani Ports and SEZ Ltd., power generation company Adani Power Ltd., power distribution company Adani Energy Solutions Ltd., renewable energy company Adani Green Energy Ltd., new energy company Adani Total Gas Ltd., fast-moving consumer goods company Adani Wilmar Ltd., and cement manufacturing companies Ambuja Cements and ACC Ltd.
The Adani family, as promoters, owns 65-75% of most of the listed companies, leaving ample scope for promoters to monetise their stakes if required.
The Securities and Exchange Board of India (Sebi) Rules require listed companies to have 25% or more of their shares held by the public.
The person cited above agreed that the rise in Adani Group shares in recent months is behind the family’s latest fundraising plan.
On a net basis, since January, shares of Adani Ports have gained 46%, Adani Power 28.4%, Ambuja Cements 22%, Adani Green 18% and Adani Enterprises 9%.
However, on Thursday, Adani Power shares fell 2.72% to ₹676 during the day after some media reports said the promoters may offload the stake. The company is trading nearly 24% below its 52-week high of ₹896.75 on the BSE, which it touched on June 3.
Between April and July, the Adani family had increased its stake in Ambuja Cements (at least 3%), Adani Enterprises (2.11%), Adani Power (1%), Adani Energy Solutions (1.72%) and Adani Green Energy (1.15%). This prompted the promoters to invest at least ₹23,000 crore in these five companies.
The person said the family bought shares in these companies to support their growth. “The prices of these companies (in which promoters increased their stake) are now going up. They (the companies) have got the promoter support that was needed at that time. Therefore, a rebalancing of the portfolio of promoters’ stake can now be done.”
In addition to raising funds by selling stakes in listed companies, the family may also sell stakes in some unlisted real estate and infrastructure companies, the source added.
However, this would go beyond the $3.6 billion fundraising plan.
At group level, the conglomerate plans to invest up to ₹1.3 trillion in fiscal year 2025, mainly with the aim of expanding its capabilities in the green energy, airport and infrastructure businesses.
Among its portfolio companies, Adani Green Energy is the only one that plans to invest ₹34,000 crore to expand its facilities in Khavda, Gujarat.
The group, which won more than ₹82,000 crore in cash in FY24, plans to invest $21 billion in the airport business and then list it in FY27.
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