Adani Ports and Adani Airport Holdings explore bond market for capital infusion

Adani Ports and Special Economic Zones (SEZ) along with Adani Airport Holdings, prominent entities within the Adani Group, are reportedly in discussions with merchant bankers to raise up to ₹1,500 crore each through local currency bonds. This strategic move is a part of the larger plan of the Gautam Adani-led conglomerate to raise ₹10,000 crore in the fiscal year 2024. The potential bond issues are expected to range from one to five years and could be initiated as early as September.

Adani Group, a multifaceted conglomerate with interests spanning from ports to power, is looking to regain investor trust by tapping into the bond market. The group is keen on evaluating investor appetite for its securities before making a market entry, emphasizing its intent to issue bonds when demand is favorable. Adani Enterprises and Adani Electricity Mumbai are also considering potential debt issuances, highlighting the wider scope of the conglomerate’s fundraising efforts.

While the precise details of the fundraising endeavors are expected to be finalized post the submission of Securities & Exchange Board of India’s (SEBI) report on its inquiry into allegations made by US-based short-seller Hindenburg Research, initial discussions have already begun. SEBI’s findings, anticipated to be released around Monday, will likely influence the pace and approach of Adani Group’s fundraising ventures.

This fundraising initiative marks Adani Group’s return to the local bond market, following a hiatus since January. During this period, a report by Hindenburg Research raised concerns about corporate governance within the group, triggering a significant sell-off in Adani Group’s stocks. However, Adani Group has at times refuted these allegations and sought to address investor apprehensions.

As Adani Group strives to restore investor confidence and alleviate any lingering doubts about its corporate practices, these bond issuances are seen as a step towards bridging the trust gap. With a focus on strategic timing and responsive actions, the group aims to present a more stable and secure investment opportunity to the market, backed by well-considered financial decisions and a commitment to transparent practices.