The Adani Group is likely to make an announcement early this week on selling a stake in its cement business, with GQG Partners being one of the probable buyers, sources said.
on friday, businessline had reported that the Adani Group was planning to sell 4-5 per cent of its holding in ACC and Ambuja Cement, to raise about ₹3,600 crore.
On March 2, it raised about $1.9 billion through stake sale in Adani Enterprises, Adani Ports, Adani Transmission and Adani Energy, which was acquired by GQG Partners in a series of block deals. Rajiv Jain, Chairman and Chief Investment Officer of GQG Partners, subsequently indicated that his company could invest more in the Adani group.
Sources have indicated that more fundraising — somewhere in the region of $1.7 billion — will take place before the end of March. It is understood to be in talks also with a sovereign wealth fund and a corporate investment firm that could pump in money for small stakes in group companies.
Cutting down debts
The group has been in firefighting mode to raise funds to pay off maturing short-term debt and redeem pledged shares. Part of the funds raised from GQG was used to release pledges, while it also repaid about $500 million to foreign banks as part payment of a bridge loan taken to finance the acquisition of ACC and Ambuja Cement.
Since the start of the crisis in January — triggered by hedge fund Hindenberg Research’s startling allegations of malpractices and misgovernance within the conglomerate — the group has paid off over $2 billion of share-backed financing. But, even as it redeemed the pledges in Adani Ports & Special Economic Zone, Adani Enterprises, Adani Transmission and Adani Green Energy, it was simultaneously pledging more stakes. In Adani Transmission, promoter pledged 0.76 per cent more stake on March 6, while about 1 per cent additional stake was pledged in Adani Green as well.
Sources also said the group has to report all new investments and fundraising decisions to the Securities and Exchange Board of India, as a result of ongoing investigations. This may slow down decision-making. While the Supreme Court has formed a 6-member committee to look into the issues surrounding the Adani group and its fallout, the top court has also directed the markets regulator to complete its probe in two months.