Three Adani firms weigh raising up to US$5 billion: Bloomberg News

THREE Adani Group firms are considering raising up to US$5 billion, Bloomberg News said on Thursday (May 11), months after a mega US$2.5 billion share sale by the Indian group’s flagship firm fell through in the wake of a scathing short-seller report.

Adani Enterprises, Adani Green Energy and Adani Transmission, part of billionaire Gautam Adani’s conglomerate, may raise between US$3 billion and US$5 billion, the report said, citing people familiar with the matter.

The three companies said on Wednesday they were holding board meetings on Saturday to consider proposals to raise funds. They did not disclose how much they intended to raise.

Abu Dhabi-based International Holding Co (IHC), which has invested almost US$2 billion in Adani companies, does not plan to take part in any potential share or bond sales, IHC’s spokesperson Ahmed Ibrahim told Reuters.

“At this point, IHC has no intention of participating in or joining any potential equities or bonds sales by Adani or any other party,” Ibrahim said.

“If anything changes, IHC will disclose the same to the market as per the governor’s rules and regulations.”

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Adani Enterprises, Adani Green Energy and Adani Transmission did not immediately respond to Reuters’ requests for comment.

The stocks of the conglomerate’s seven listed companies cratered earlier this year after US short-seller Hindenburg Research accused the group of unlawful use of offshore tax havens and stock manipulation. Adani has denied the allegations.

The stocks are still off more than US$110 billion in value since the report. REUTERS