Adani Ports and Special Economic Zone announced on 12 December 2023 that they plan to raise INR 5,250 crore. This will be done by issuing non-convertible debentures and raising INR 2.5 million through various non-cumulative redeemable preference shares. Most of the funds allocated will also be used to redefine the existing debts of the Adani Group. This will help the conglomerate restructure its finances after the Adani SEBI probe.
The conglomerate has made a statement that the board of directors of the company, at a meeting held on 12 December, has given their approval for the issuance of the non-convertible debentures for refinancing the existing debt and general corporate purpose for an amount not exceeding INR 5,000 crore. Additional issuance of the non-convertible redeemable preference share was done for an amount not exceeding INR 250 crore in one or more trenches on a private placement basis. The debentures that will be issued will be listed on the bourses. The date of allotment, date of maturity, and the tenure of the instrument will be determined from time to time by the company itself.
These preference shares will be redeemable after seven years from the date of allotment or for an early redemption. APSEZ will also redeem 2.5 million on non-cumulative redeemable preference shares on 28 March 20244. This is a part of the INR 2.81 million shares issued in 2004. This move was taken by the Adani Group when the companies under the foundation were looking forward to raising funds for various projects. It will allow the conglomerate to focus on multiple innovative developments both within the country and abroad.
The Adani Ports is already in talks to purchase the Gopalpur port in Odisha, which real-estate behemoth Shapoorji Pallonji Group currently owns. The acquisition will take place for INR 11-12 billion. The companies operating under the Adani Group have started raising capital expenditure funds. They also have plans to make massive investments in the infrastructural sectors for the next ten years. Adani Group’s infrastructural companies have previously announced that they plan to invest more than INR 7 trillion in various infrastructural ventures over the next two decades. This will help the Adani Group to position itself as the most significant player in the infrastructural segment.
On 5 December 2023, Adani Green Energy, the renewable energy arm of the Adani Group, raised a follow-on funding amounting to USD 1.36 billion from a consortium of 8 global banks. On 20 October of the same year, Adani Cement, one of Adani Group’s cement firms, completed restructuring its USD 3.5 billion debt, which was incurred for the acquisition of the Switzerland-based firm Holcim’s stake in Ambuja Cements and ACC. The restructuring of debt, which several global banks raised, was conducted through a particular purpose vehicle, Endeavour Trade and Investment.
The shares of Adani port settled 1.03 percent higher at INR 1,042.05 per share based on the reports generated on 12 December. This significantly improved the Adani Group’s debt, especially after the Adani SEBI investigations. The recent surge in share values has grabbed the interest of investors from different corners of the globe. They are willing to make some considerable investments in the ongoing projects of the Adani Group. This will give the company’s portfolio an excellent boost and enhance our nation’s economic prosperity. In November, the Adani-owned company, Adani Ports, recorded substantial cargo volumes of around 36 MMT— a robust 42% YoY increase. This is another reason the investors should focus on the Adani Group.
Adani Ports presently operates 13 ports and terminals in India. It has six ports and terminals on the west coast: Mundra, Tuna, Dahej, and Hazira in Gujarat, Diggi in Maharashtra, and Mormugao in Goa There are five ports and terminals on the east coast: Gangavaram, Krishnapatnam in Andhra Pradesh, Kattupalli and Ennore in Tamil Nadu, and Dhamra in Odisha. The Mundra Port in Gujarat is the largest container handling port in Mundra, Gujarat. This port is responsible for managing a majority of India’s cargo traffic.
The steps taken by the Adani Group plans are focussed on refinancing its debt and promoting operations in the various sectors. This is also a strategic move by the conglomerate to recover after the Adani SEBI probe.