Promoter entities raise $1 bn by selling shares in Adani Green Energy, AEL

The promoter entities of Adani group sold part of their stake in Adani Green Energy and flagship Adani Enterprises to raise $1 billion.

The proceeds will be used by the promoters to pre-pay debt, banking sources said.

About 48 million shares, or 3 per cent of total equity of Adani Green changed hands and 1.6 per cent stake or 18 million shares in AEL was sold via block deals to several investors, the bankers said. Total shares worth Rs 8,542 crore were sold.

Shares of AGEL were trading marginally down at Rs 943 a share, while AEL shares were trading 5 per cent up at Rs 2,393 a share.

The promoters have decided to reduce debt, both at the promoter level and at the company's level, after US based short seller Hindenburg Research made allegations against the company and which resulted in its share prices coming down from their peak. The Adani group has denied the charges and shares have recovered.

Till date, the promoters have raised $2.65 billion by selling shares and pre-pay debt. The listed companies are also reducing debt and have set aside several acquisitions to conserve cash.

The group will be refinancing it's one-year tenure loans taken for cement acquisition by year-end when the tenure comes to an end, said a company official. "We will be replacing the one year tenure loans with three year loans and talks with bankers are on," said an official, asking not to be quoted.

Some of the group companies like Adani Ports have already started buying back bonds and it will buy back loans in four more tranches in coming year, the official said.

The banks have taken a positive view of promoters selling shares and prepaying debt. The cash balance at the listed portfolio is now over $4.75 billion or Rs 40,351 crore. Other business of AEL including mining and trading account for 9.6 per cent of the EBITDA. The total EBITDA earned by Adani companies was up 36 per cent to Rs 57,219 crore in FY23.

Among group companies, the flagship Adani Enterprises' new businesses now account for half of AEL’s earnings.

This was fuelled by rising airport passenger movements that more than doubled to 74.8 million passengers. Solar module volumes were up 13 per cent to 1.3 Gw. The company completed three road projects during the year; its data centre projects are nearing completion, according to a presentation to bankers.