Indian billionaire seeks to raise $5 bln from sovereign funds

Indian billionaire Gautam Adani plans to raise nearly $5 billion from sovereign wealth funds by selling shares in his sprawling business empire to reduce the debt ratio of his group.

“Bloomberg” agency quoted sources as saying that the network of companies owned by the richest person in Asia has contacted senior officials in companies, including the Mubadala Investment Company and the Abu Dhabi Investment Authority, regarding investments in his business group. The sources said that the Adani Group communicated separately with the sovereign funds of Qatar and the Kingdom of Saudi Arabia, as well as pension funds such as the Canadian Pension Plan Investment Board.

According to “Al-Arabiya”, the sources said that “Adani Group” is also exploring the interest of companies within the Royal and Abu Dhabi Holding Group conglomerate. One person said the Indian group had discussed raising up to $10 billion

“Bloomberg” also reported on Tuesday that the specialized company, Adani Enterprises, is considering issuing new shares worth between $1.8 billion to $2.4 billion as soon as next year, within the larger goal of raising between $5 to $10 billion.

Adani Enterprises disclosed in a statement to the stock exchange on Tuesday that the company’s board of directors will meet today, Friday, November 25, to discuss fundraising.

Two of the sources said that bankers urged the group to increase this amount of shares in order to improve the group’s debt ratios. The issuance will also enhance the liquidity of corporate shares, which are two of the most prominent criticisms that the group has received. The research firm, CreditSights, described the company’s leverage – the debt-to-equity ratio – as “high” in September, which the company disputed, describing its companies’ leverage ratios as “healthy”.

Adani’s potential move reflects a push from fellow Indian billionaire Mukesh Ambani, who raised more than $27 billion in 2020 from global investors by selling stakes in units of his Reliance Industries group.