Promoter entities raised $1 billion by selling shares of Adani Green Energy and AEL

To generate $1 billion, the Adani Group’s promoter companies sold a portion of their ownership in their flagship company, Adani Enterprises, as well as in Adani Green Energy.

According to financial sources, the promoters plan to prepay their loan with the money.

According to the bankers, 18 million shares of AEL—or 1.6% of the company’s total equity—and 48 million shares, or 3% of Adani Green’s total equity—received new ownership in separate block sales. Shares were sold for a total value of Rs. 8,542 crore.

At Rs 943 a share, AGEL shares were trading slightly lower than AEL shares, which were up 5% at Rs 2,393 a share.

After US-based short seller Hindenburg Research filed claims against the company, the promoters opted to reduce debt, both at the promoter level and at the company level. As a result, the share price of the company has declined from its high. Shares have increased since the Adani group rejected the accusations.

By selling shares and paying off debt up front, the promoters have raised a total of $2.65 billion. The mentioned companies have put off several purchases in order to save money, and they are also paying down debt.

According to a corporate representative, the organization will refinance its loans with a one-year term that it took out to buy cement before the end of the year. A representative who wished to remain anonymous added, “We will be replacing the one-year tenure loans with three-year loans, and talks with bankers are on.”

Adani Ports, one of the group companies, has already begun purchasing bonds and will do so in four additional tranches over the course of the following year, according to the official.

Promoters selling shares and paying off debt in advance have received favorable treatment from the banks. Over $4.75 billion, or Rs 40,351 crore, in cash is currently available in the portfolio that is publicly traded. 9.6% of AEL’s EBITDA comes from other businesses including mining and trading. In FY23, the Adani companies’ combined EBITDA increased 36% to Rs 57,219 crore.

The new operations of the group’s flagship company, Adani Enterprises, now make up half of AEL’s profits.

This was fueled by increased airport passenger traffic, which increased by more than doubling to 74.8 million people. To 1.3 GW, solar module volumes increased by 13%. According to a presentation made to bankers, the company’s data center projects are nearly finished, and it completed three road projects during the year.