Adani raises $15 bn in equity, debt in comeback strategy after Hindenburg rout
Billionaire Gautam Adani's conglomerate has raised over USD 5 billion in equity and a double of that in debt this year, following a short seller report.
Billionaire Gautam Adani's conglomerate has raised over USD 5 billion in equity and a double of that in debt this year, following a short seller report.
India's ACC on Thursday reported a bigger-than-expected second-quarter profit aided by sturdy domestic demand, and forecast strong growth for the cement industry.
Adani Group, a major player in India's infrastructure sector, is eyeing further expansion in the cement industry. Adani recently acquired three major cement companies and is now reportedly in talks to purchase Orient Cement.
Analysts predict that domestic cement producers in India will see a significant boost in earnings for the September quarter, driven by strong year-on-year volume growth and lower power and fuel costs.
Industrialist CK Birla has approached Gautam Adani to sell his promoter stake in Orient Cement after rejecting offers from other buyers.
Shares of Adani Green Energy fell 4.3%, while Adani Enterprises, Adani Transmission and Ambuja Cements fell nearly 4%. ACC bucked the trend, ending marginally higher.
The Adani group - through its buyout of ACC and Ambuja Cements - is the second largest manufacturer of cement in the country. It plans to double its existing capacity to 140 million tonnes in five years with an estimated capital expenditure of ₹47,000 crore.
Core infrastructure and utility platform, which generates stable and assured cash flows, generated EBITDA of Rs 20,233 crore, accounting for 86 per cent of the total portfolio EBITDA.
Strong operational performance helped boost the group's net profit, although overall sales saw a decline during the quarter. The comparative performance excludes the group's cement entities acquired after the first quarter of FY23.
Karan Adani, director, Ambuja Cement, told ET's Deborshi Chaki and Nehal Chaliawala in an interview that the group is open to more acquisition opportunities.
The cement maker, India's oldest manufacturer of the commodity, said that based on the review of independent law firms hired by the Adani Group, and the pending outcome of regulatory investigations into the matter, ACC has decided to not carry out any separate independent probe.