Adani taps PEs, banks to raise up to $3 billion

Debt, equity raising in 4 months for airport, green hydrogen, solar plans

- Anirudh Laskar

The Adani group is talking to at least five global private equity (PE) firms and a clutch of Indian banks to raise $2.5-3 billion over the next four months, two people aware of the development said, as the conglomerate aims to fast-track some of its key mega projects in the airport and renewable energy space.

Centerbridge Partners LP, Pacific Capital Group and the UAE’s International Holding Co. (IHC) are among the PE firms that have expressed interest in investing in Adani New Industries Ltd, Adani Airport Holdings Ltd and Adani Green Energy Ltd, said one of the two people cited above, both of whom spoke on condition of anonymity.

"Over the past six weeks, Adani group officials have held talks with multiple PE firms in the US, Canada, West Asia and Europe to raise capital via the sale of equity shares in subsidiaries. Investors are upbeat after the Supreme Court's recent judgement in the Hindenburg (Research report) case," the person added.

Emails sent to the Adani group, Centerbridge, Pacific Capital and IHC remained unanswered.

State Bank of India, Bank of Baroda and Axis Bank are some of the prominent lenders in discussions with the group, the people said. Emails sent to the banks seeking comment remained unanswered.

The Adani group, according to the two people, is looking to raise at least 40% of the capital through a combination of sale of equity stakes in group firms and promoter fund infusion, while the remaining 60% could be through debt.

The funds are primarily to fund the upcoming Navi Mumbai International Airport Ltd (NMIA) project, the group's mega green hydrogen project, and its solar panel manufacturing business. All three projects have been fast-tracked. Capex plans are on track," said the first person.