Two fundraisings, one stake sale, and one partnership — everything the Adani Group has announced in the past 24 hours

Two fundraisings, one stake sale, and one partnership — everything the Adani Group has announced in the past 24 hours
Gautam Adani chairman and founder of the Adani GroupBCCL

  • The Adani Group and Airbus have partnered up to provide aircraft services in the South Asian market.
  • It has also announced 50% stake in Adani Green Energy Limited will be sold to the French oil and gas major Total SA.
  • In addition, the Adani Transmission Limited is also looking to raise funds by issuing dollar-value bonds.
The Adani Group’s Defence and Aerospace arm just signed a new contract with the French aerospace giant Airbus. The two companies will be collaboration in the area of aircraft services for India and the South Asian market. But, that’s not all the Adani Group has been up to in the last 24 hours.

The group’s electricity arm, Adani Transmission Limited (ATL), has put out two fundraising bonds in dollar-denominations. On the other hand, it’s also found 50% of its stake in Green Energy Limited (GEL) to the French oil and gas major Total SA.

Over the past year, Adani Group’s stock value has increased by 90% to hit a market cap of ₹27,800 crore.

This will go a long way to increase Gautam Adani’s net worth — the founder and chairman of the Adani Group — who is currently worth $14.1 billion, according to Forbes.

Two raises and a sale
ATL had assured investors that it would look at ways to cut to unlock value either by stake sale or by financing projects through debt, as well as by raising cheaper loans to repay the existing expensive ones, according to a Systematix report in December 2019.

It is the largest power transmission company in India’s private sector with six subsidiaries within. The company has announced its maiden US private placement transaction worth $310 million, according to company filings.

Adani Electricity Mumbai Limited (AEML), a subsidiary of Adani Transmission Limited (ATL), which provided electricity to the city of Mumbai has also launched a dollar bond offering. The end goal is to hit $1 billion. “The funds will enable us to expand our network in the transmission and distribution sector and in addition also scale up the electrification infrastructure," said Anil Sardana, CEO and managing director of Adani Transmission.

The biggest of all the news is that French oil and gas major Total SA — the world’s second-largest liquefied natural gas company — has decided to acquire 50% stake in Adani’s solar business Green Energy Limited (AGEL) worth $510 million.

Total also has plans to buy 37.4% stake in Adani Gas for around ₹5,700 crore. “We are delighted to extend our long term partnership with TOTAL to our renewable energy business in AGEL," said Gautam Adani.

See also:
Gautam Adani's wealth multiplied nearly 3 times in the last four years

Adani Enterprises net profit surges to Rs 383 cr in Dec quarter

Adani Transmission raises $310 mn