GQG could decide a stake in Adani cements enterprise

The Adani Group is more likely to make an announcement early this week on promoting a stake in its cement enterprise, with GQG Companions being one of many possible patrons, sources stated.

On Friday, businessline had reported that the Adani Group was planning to promote 4-5 per cent of its holding in ACC and Ambuja Cement, to lift about ₹3,600 crore.

On March 2, it raised about $1.9 billion by means of stake sale in Adani Enterprises, Adani Ports, Adani Transmission and Adani Vitality, which was acquired by GQG Companions in a collection of block offers. Rajiv Jain, Chairman and Chief Funding Officer of GQG Companions, subsequently indicated that his firm may make investments extra within the Adani group.

Sources have indicated that extra fundraising — someplace within the area of $1.7 billion — will happen earlier than the tip of March. It’s understood to be in talks additionally with a sovereign wealth fund and a company funding agency that would pump in cash for small stakes in group firms. 

Reducing down money owed

The group has been in firefighting mode to lift funds to repay maturing short-term debt and redeem pledged shares. A part of the funds raised from GQG was used to launch pledges, whereas it additionally repaid about $500 million to international banks as half cost of a bridge mortgage taken to finance the acquisition of ACC and Ambuja Cement.

Because the begin of the disaster in January — triggered by hedge fund Hindenberg Analysis’s startling allegations of malpractices and misgovernance inside the conglomerate — the group has paid off over $2 billion of share-backed financing. However, even because it redeemed the pledges in Adani Ports & Particular Financial Zone, Adani Enterprises, Adani Transmission and Adani Inexperienced Vitality , it was concurrently pledging extra stakes. In Adani Transmission, promoter pledged 0.76 per cent extra stake on March 6, whereas about 1 per cent extra stake was pledged in Adani Inexperienced as properly.

Sources additionally stated the group has to report all new investments and fundraising selections to the Securities and Trade Board of India, on account of ongoing investigations. This may increasingly decelerate decision-making. Whereas the Supreme Court docket has fashioned a 6-member committee to look into the problems surrounding the Adani group and its fallout, the highest court docket has additionally directed the markets regulator to finish its probe in two months.

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