Adani Group Shares Will Remain On Investors' Radar Tomorrow; Here's Why

The share price of Adani Group firms will remain in focus on Monday after a media report highlighted that the group is planning to raise $350 million via dollar bonds to prepay December 2024 bonds.

Gautam Adani-led Indian conglomerate is working on a plan to raise $350 million via dollar bonds next year, mainly to refinance a $500 million RG1 (restricted group 1) bond that will mature in December 2024, according to the Economic Times report.

RG1, the restricted group with a solar generation capacity of 930 MW includes three subsidiaries of Adani Green - Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited (PSEPL), and Prayatna Developer Private Limited.

As per the report, the group may also call the bonds in July 2024, six months prior to the maturity.

Recently, at Trust Group's India Debt Capital Market Summit 2023, Jusgeshinder Singh, CFO of Adani Group was heard saying, "We can call the December bond on July 7 without paying pre-payment penalty and complying with RBI guidelines."

Singh added that the group has prepared for both private placement as well as bond issues to refinance the paper maturing in December next year. While speaking on the funding requirements for a $750 million bond due in September 2024, Singh said the aim is to complete this by December 10-11, adding that the company has already arranged the necessary funds for this specific bond through internal accruals.

According to Singh, the group is looking to invest Rs 7 lakh crore in infrastructure in the coming decade.
While expressing confidence in Adani's ability to manage upcoming financial debt obligations and debt-raising, Singh said, "We have a lot of demand for USD bonds at Adani Group" he added. "Our companies are ready for Reg D and Reg S 144 issuances. The issue (launch) will depend on the specific demand. Reg D bond will have a tenure of 18 years plus."

Reg S bonds are sold to non-US investors, while Reg D bonds are offerings within the US, mostly to investors not having full public registration.

In all Adani Group has raised $9 billion debt from global markets via the issuance of 17 bonds. Among these bonds, Adani Green Energy's $750-million, 4.375% bond maturing in September 2024 has seen the highest volatility.
Adani Green Energy's 2024 dollar notes recovered after falling to the 60s after the Hindenburg report, which levelled serious charges against the Indian conglomerate including stock price manipulation and accounting fraud. Adani Group has vehemently denied these charges and called them baseless.

On Adani Wilmar, Singh said that the group is presently analyzing whether to retain or divest the Adani Wilmar stake, and the company will take a call on this within the next three months.

Adani shares closed mixed on Friday following a bull run in the earlier two sessions. On Friday, Adani Green Energy shares closed 0.19% lower at Rs 1026.55 per share, Adani Power was up 2.06% at Rs 440.20 per share, and Adani Enterprises closed 0.12% higher at Rs 2362.30 per share.