The Adani Group, a prominent conglomerate in India, is reportedly engaged in advanced discussions with sovereign funds based in West Asia to secure funding of up to $2.6 billion for its airport expansion and green hydrogen projects, as per a report by the Business Standard published on Sunday.
According to sources familiar with the matter cited in the report, Adani Enterprises, the flagship company of the Adani Group, may consider reducing its stake in either the airport-holding firm or the green hydrogen business, or potentially both, to accommodate investment funds.
While the precise timing of the fundraising endeavor remains undetermined, the Business Standard anticipates its launch in the market by mid-2024.
The billionaire Gautam Adani-led companies are presenting an appealing opportunity to infrastructure funds, particularly those interested in long-term investments in India, according to a banker closely involved in the discussions.
This move comes in the wake of a challenging period for the Adani Group, marked by a January 2023 report from U.S. shortseller Hindenburg alleging misconduct, leading to a significant erosion of $150 billion in the value of shares across Adani Group companies. Consequently, the conglomerate was compelled to scale back some of its ambitious expansion plans.
However, a subsequent ruling by the Supreme Court, affirming that the group does not require further scrutiny, combined with investments from Abu Dhabi conglomerate International Holding and U.S. boutique investment firm GQG Partners, has helped restore investor confidence.
In the past year, the Adani Group successfully raised funds from various entities, including the Qatar Investment Authority, TotalEnergies, and GQG Partners.
Earlier in January, the group unveiled plans to invest 624 billion rupees ($7.52 billion) in the Indian states of Maharashtra and Telangana, as part of its extensive seven trillion-rupee expenditure blueprint for the next decade.
