Billionaire Gautam Adani and his family plan to inject $1 billion into the group’s renewable energy unit, people familiar with the matter said, as the group races to reach ambitious green goals while facing maturing bonds next year.
Adani Green Energy aims to issue preferential shares to the company’s founders for meeting expansion and refinancing needs, according to people familiar with the discussions who didn’t want to be identified as the talks are private. An Adani Group representative didn’t offer an immediate comment on the founders’ investment.
The company board will consider fundraising proposals on December 26, including evaluating options such as selling shares or convertible securities, it said in a filing on Wednesday without sharing any more details. “An equity raise could boost deleveraging and lower refinancing risk, though governance concerns may linger,” Sharon Chen, a Bloomberg Intelligence analyst, wrote in a December 15 note.
The company also has bond maturities worth $1.2 billion coming up next year and it has already begun outlining plans for repaying or refinancing those. All these efforts underscore Adani Group’s attempts to draw a line over damaging allegations of corporate fraud levied by Hindenburg in January. Despite strongly denying these allegations, Adani companies lost over $150 billion in market value at one point.
Adani Green Energy aims to issue preferential shares to the company’s founders for meeting expansion and refinancing needs, according to people familiar with the discussions who didn’t want to be identified as the talks are private. An Adani Group representative didn’t offer an immediate comment on the founders’ investment.
The company board will consider fundraising proposals on December 26, including evaluating options such as selling shares or convertible securities, it said in a filing on Wednesday without sharing any more details. “An equity raise could boost deleveraging and lower refinancing risk, though governance concerns may linger,” Sharon Chen, a Bloomberg Intelligence analyst, wrote in a December 15 note.
The company also has bond maturities worth $1.2 billion coming up next year and it has already begun outlining plans for repaying or refinancing those. All these efforts underscore Adani Group’s attempts to draw a line over damaging allegations of corporate fraud levied by Hindenburg in January. Despite strongly denying these allegations, Adani companies lost over $150 billion in market value at one point.