Billionaire Gautam Adani’s conglomerate Adani Group, after recovering from the Hindenburg Research saga, is expanding towards airport and green energy projects throughout the country. In a bid to fund its green hydrogen projects, Adani’s firm is seeking to raise $2.6 billion through top sovereign funds in the Middle East, reported Business Standard.
Adani Group, the report said, is in advanced talks with West Asia-based sovereign funds to raise as much as ₹21,577 crore for expanding its airport business and advancements in the green energy sector.
The Adani Group’s flagship firm Adani Enterprises may reduce its stake in either the airport-holding firm or the green hydrogen business, or both, for investment funds, the report added, citing a source close to the development. The timeline for the funding, however, is yet to be revealed by the company.
It is expected that the fundraising will be finalised by mid-2024, as per the report. Adani Group’s airport management business has taken off over the last couple years, landing multiple high-profile projects and aiming for swift expansion with this new round of funding.
Last week, US investment brokerage Jefferies predicted that Adani’s airport business will see an annual EBITDA growth of 47 per cent over the next four years, giving it a ‘buy’ recommendation.
In 2023, the Adani Group raised funds from various entities, including Qatar Investment Authority, TotalEnergies and GQG Partners. In January, the group said it would invest 624 billion rupees ($7.52 billion) in the Indian states of Maharashtra and Telangana as part of its seven trillion-rupee expenditure plan for the next decade.
Adani’s recovery after Hindenburg saga
Gautam Adani and his conglomerate Adani Group took a major hit in wealth when Hindenburg Research issued a report alleging financial irregularities and stock manipulation within the company, urging for an in-depth investigation.
The billionaire lost over $80 billion of his wealth after the shares of his group companies tanked throughout last year.
However, a Supreme Court ruling that the group does not need more scrutiny, along with investments from Abu Dhabi conglomerate International Holding and U.S. boutique investment firm GQG Partners have restored investor confidence.
Gautam Adani’s net worth recovered swiftly after the ruling, briefly surpassing Reliance boss Mukesh Ambani to become the richest person in Asia.
(With inputs from Reuters)