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Following a period of turbulence marked by the Hindenburg Research controversy, the Adani Group, led by billionaire Gautam Adani, is poised to embark on ambitious ventures in the realm of airport expansion and green energy initiatives across India. Recovering from the setbacks of the Hindenburg saga, the conglomerate is now eyeing a substantial capital infusion of $2.6 billion from prominent sovereign funds in the Middle East, as reported by Business Standard.
The proposed fundraising aims to bolster Adani’s foray into the burgeoning green hydrogen sector while also facilitating the expansion of its airport business. Advanced negotiations are reportedly underway with sovereign funds based in West Asia to secure funding amounting to ₹21,577 crore. Adani Enterprises, the flagship firm of the conglomerate, may contemplate reducing its stake in either the airport-holding entity or the green hydrogen business, or possibly both, to attract investment, according to insider sources cited in the report. However, specifics regarding the timeline for the fundraising endeavor are yet to be disclosed by the company.
The fundraising initiative is anticipated to reach fruition by mid-2024, laying the groundwork for Adani Group’s ambitious growth trajectory. Over the past few years, the conglomerate’s airport management business has experienced significant momentum, securing multiple high-profile projects and aiming for rapid expansion fueled by this infusion of capital.
A recent analysis by US investment brokerage Jefferies forecasts robust annual EBITDA growth of 47% for Adani’s airport business over the next four years, prompting a ‘buy’ recommendation from the firm.
In 2023, the Adani Group successfully secured investments from various entities, including the Qatar Investment Authority, TotalEnergies, and GQG Partners. Additionally, the conglomerate unveiled plans in January to invest ₹624 billion ($7.52 billion) in the Indian states of Maharashtra and Telangana as part of its ambitious seven trillion-rupee expenditure plan for the next decade.
The resurgence of Adani Group’s fortunes comes after weathering the storm of the Hindenburg Research saga, which inflicted significant financial damage and cast a shadow of doubt over the conglomerate’s integrity. Despite facing intense scrutiny and experiencing a substantial erosion in wealth, Gautam Adani’s net worth staged a remarkable recovery following a Supreme Court ruling absolving the group of the need for further investigation. Key investments from Abu Dhabi conglomerate International Holding and US boutique investment firm GQG Partners further bolstered investor confidence, propelling Adani’s resurgence and reaffirming its position as a formidable player in India’s corporate landscape.
Sources By Agencies
