Adani group aims to raise about $800 million for financing green energy projects – EQ Mag
Nearly a month after the report was published, Adani Group lost almosty two-thirds of its combined market value.
New Delhi : Billionaire Gautam Adani-led Adani Group is aiming to raise about $800 million for new green energy projects, Bloomberg reported quoting people familiar with the matter. This, if true, could be Adani Group’s biggest borrowing ever since it was lambasted by New York-based short seller Hindenburg Research in January.
As per the report, the Adani Group is in discussions with global banks including Sumitomo Mitsui Banking Corp., DBS Bank Ltd., Mitsubishi UFJ Financial Group. and Standard Chartered Plc. The sources said that the size of the financing could range from about $700 million to some $800 million, but the plan and size aren’t final, and could vary.
The Report That Dragged Gautam Adani From Top Of the World
On 24 January 2023, days ahead of Adani Enterprises’ proposed Rs 20,000 crore follow on public offer (FPO), Hindenburg Research published a report titled “Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History.”
The result was almost immediate. Adani Enterprises’ FPO did not receive any subscribers until the last day, when it got fully subscribed. However, the company scrapped the fully subscribed FPO citing “interest of the investors.”
After thanking investors for their support and commitment towards the FPO, Gautam Adani said that given the unprecedented market movement, the board of directors of the company felt that going ahead with the FPO will not be “morally correct.”
Nearly a month after the report was published, Adani Group lost almosty two-thirds of its combined market value. On January 24, 2023, the market value of Adani Group stood at Rs 19.2 lakh crore. A month later, on February 28, 2023, Adani Group’s market value plunged to Rs 6.8 lakh crore.
Banks coming forward to finance Adani Group projects show that they’re confident in lending money to the conglomerate. Despite the group denying these allegations, it lost more than $100 billion in market value. Gautam Adani, who was the third richest person in the world at the time of publication of this report, now stands at the twenty-first position.
Source: PTI
