Adani’s Recovery Plan, Seeks to Raise $800 Million

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Adani Group is seeking to raise approximately $800 million to finance fresh green energy initiatives, sources familiar with the matter reported. This could potentially represent the largest borrowing undertaken by the conglomerate since it was heavily criticized by a short seller in January.

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Discussions are underway between the Gautam Adani-led group and various global banks such as DBS Bank Ltd., Mitsubishi UFJ Financial Group, Standard Chartered Plc, and Sumitomo Mitsui Banking Corp, according to the reports. However, the sources have requested anonymity due to the confidential nature of these talks.

Reportedly, the proposed funding could range from approximately $700 million to $800 million, but the specifics of the plan and the amount could still be subject to change.

If the proposed project financing for Adani Group’s green energy initiatives is approved, it could signify the growing willingness of banks to lend money to the conglomerate. This comes after Adani Group faced accusations of corporate fraud by Hindenburg Research, which resulted in the loss of more than $100 billion in market value, despite the group’s denial of the allegations. In response, Adani had to recalibrate his business plans and even prepay certain loans in order to regain investor confidence.

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The renewable energy sector in India is receiving growing foreign investment and ranked among the country’s top five industries for overseas funds during the last fiscal year, with a 5% share of all inflows between April and September 2022. This is a noticeable increase from the 3.3% share during the same period in the previous year.

Shruti Rag