Adani raises $15 bn in equity, debt in comeback plan post Hindenburg rout

Billionaire Gautam Adani's sprawling conglomerate has raised over USD 5 billion (Rs 41,500 crore) in equity and a double of that in debt this year as the apples-to-airport group made a comeback since being hit by a bombshell short seller report.

Adani, who was the world's second-richest man at the start of the year, saw almost USD 60 billion of his personal wealth erased after Hindenburg Research in a January 24 report accused his group of market manipulation and accounting fraud.

The group denied all allegations and reworked its strategy, fueling a comeback that now has the tycoon some USD 36 billion short of where he started the year and two notch and USD 12 billion shy of rival billionaire Mukesh Ambani.

Star investor GQG Partners bought stakes worth almost USD 4.3 billion in five group companies between March and August while Qatar Investment Authority (QIA) and French energy giant TotalEnergies poured in USD 770 million in renewable energy firm Adani Green Energy Ltd, according to company filings and stock exchange data.

Parallely, the promoters infused USD 4.6 billion in repaying loans against shares, servicing loans taken for cement acquisitions and supporting green investments.

While the equity raise helped shore up investor confidence, the group re-established its bankability with USD 6.4 billion of loans raised across five companies and refinancing of USD 3.5 billion debt taken to fund the 2022 acquisition of ACC and Ambuja Cement.

Alongside, it continued with its M&A, acquiring Sanghi cement for USD 431 million, 49.38 per cent in Indian Oil Tanking for USD 128 million, Karaikal port for USD 181 million and Coastal Energen for USD 420 million, filing and stock exchange data showed.

These together with scrapping of a USD 850 million coal plant purchase, reining in of expenses, and repayment of some debt were part of attempt to claw back the narrative by showcasing that equity can be raised not just from promoters but also global investors and that the group was a responsible borrower with prepayments and on-time payments of debt.