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Adani’s Firm Plans To Raise 1.8 Bn USD In New Shares

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The issuance for a stock witnessed outsized gains, will test investor appetite, compounded by lower liquidity relative to peers and sparse analyst coverage. Presently, that valuation of Adani Enterprises at which it is being traded is 164 times of its one-year forward earnings

Asia’s richest person Gautam Adani’s flagship firm Adani Enterprises is planning to issue nearly 1.8 billion dollar in new shares, as reported by a media house.

The multi-billionaire business tycoon Gautam Adani’s conglomerate is working with advisers on the follow-on issue and may sell the shares soon in the coming year. The sale may reach nearly 2.4 billion dollar, the report added.

The issuance for a stock witnessed outsized gains, will test investor appetite, compounded by lower liquidity relative to peers and sparse analyst coverage.

Previously, the conglomerate had attributed the small free float to the Adani family holding nearly 75 per cent of Adani Enterprises. Early in this year it said that planning to increase the free float.

The shares in Adani Enterprises have jumped 134 per cent in the year to date, which gave it a market value of around 55.5 billion dollar. India’s NSE Nifty 50 index rose just 5.1 per cent over the same period. It added Adani’s flagship in the gauge during September.

Presently, that valuation of Adani Enterprises at which it is being traded is 164 times of its one-year forward earnings. Nifty, in comparison, is trading at a multiple of about 20 times and Reliance Industries being the largest firm in India by market value is trading at around 21 times, according to the media report.

The details of the fundraise along with the size and timing which may still change and deliberations are ongoing, the report added.

The company will hold board meet on 25 November in order to discuss raising funds, said the company in an exchange filing on 22 November.

Adani’s group planning to raise nearly 10 billion dollar in new debt in the coming year as the conglomerate seeks to refinance its high-cost borrowings and fund projects in the pipeline. The effort may initiate in the ongoing December quarter.

Gautam Adani being the third richest person on planet, has made forays into a diverse array of businesses with dealmaking recently. Adani spearheaded a 10.5 billion-dollar acquisition of Holcim’s local cement assets, making it India’s second biggest deal of the year.

Also, the firm is making a bid to take over New Delhi Television (NDTV), with the disclosure of an indirect 29.2 per cent stake in the broadcaster. This triggered an open offer that launched on 22 November and will run until 5 December.

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No Plan To Set-Up Family Office Overseas: Adani Group

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Media report suggested that Adani was looking at New York or Dubai to build a base for the office. Adani group in a statement said that neither the Adani Family nor Adani himself has any plan or is in talks to begin a family office overseas

Adani Group said that the founder and chairman of the ports-to-energy conglomerate, Gautam Adani is not planning to set up a family office overseas in order to manage his wealth, on 18 November.

With an addition of 58 billion dollar to his personal wealth making him the richest man in Asia and third wealthiest man in the world, media report suggested that Adani was looking at New York or Dubai to build a base for the office.

Adani group in a statement said that neither the Adani Family nor Adani himself has any plan or is in talks to begin a family office overseas.

Currently, the net worth of Adani is 135 billion dollar.

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Adani Wilmar’s Q2 Profit Drops By 73%

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It witnessed hike in its total expenses by 6 per cent to 141.5 billion rupees, whereas the revenue from operations surged by 4 per cent to 141.5 billion rupees. The company expects the second half of this fiscal year to be better with a recovery in consumer demand, even in its edible oils business

India’s Adani Wilmar recorded a sudden fall of 73 per cent in its second-quarter profit on 3 November. This happened due to fortune cooking oil maker facing struggle against dull demand from rural areas and wrestled with industry-wide input cost inflation.

Its consolidated net profit in the second quarter ending 30 September dropped to 487.6 million Indian rupees (5.88 million dollar) from 1.82 billion rupees a year ago.

It witnessed hike in its total expenses by 6 per cent to 141.5 billion rupees, whereas the revenue from operations surged by 4 per cent to 141.5 billion rupees. The decline in mainstay edible oil pulled down its growth’s speed. Adani Wilmar is a joint venture between Indian conglomerate Adani Group and Singapore’s Wilmar Group,

“In the edible oils segment, the quarter that went by saw multiple challenges in consumer demand with several macro headwinds in the form of high inflation … delayed monsoon and tepid rural demand,” Adani Wilmar said in a statement.

The company expects the second half of this fiscal year to be better with a recovery in consumer demand, even in its edible oils business.

“September 2022 witnessed higher edible oil imports of 1.59 MMT against 1.37 MMT in August 2022. We see positive signs of recovery going forward in edible oil business for H2FY23, with softening of commodity prices and the recent uptick in demand on the back of festivities and weddings,” the statement added.

It further said that “September 2022 witnessed higher edible oil imports of 1.59 MMT against 1.37 MMT in August 2022. We see positive signs of recovery going forward in edible oil business for H2FY23, with softening of commodity prices and recent uptick in demand on the back of festivities and weddings.”

In Thursday’s afternoon trading, shares of Adani Wilmar fell more than 2 per cent to 683 on the BSE, vs a 0.3 per cent decrease in the NSE Nifty 50.

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Adani Agri Logistics Receives Letter Of Award For Silo Complexes’ Project

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Silo complexes are mechanized and their automated units contains temperature and humidity controls. Such complexes are built to handle, store and preserve food grains. The said project, would be executed under the Design, Build, Finance, Operate and Transfer (DBFOT) mode

Adani Agri Logistics Ltd (AALL), received a letter of award (LoA) from the Food Corporation of India (FCI). It received LoA for its competitive bidding, to build silo complexes at different locations in the country. AALL is a hundred per cent subsidiary of Adani Logistics Limited.

“Based on the LoA, AALL will develop and operate silo complexes at four locations – Kanpur, Gonda and Sandila in Uttar Pradesh and Katihar in Bihar, in line with the Government of India’s objective of modernizing India’s storage infrastructure, creating a total silo storage capacity of 3.5 lakh million tons,” according to a statement. 

Silo complexes are mechanized and their automated units contains temperature and humidity controls. Such complexes are built to handle, store and preserve food grains. Ranging from procurement to transportation, the entire handling process is in bulk form catered through containerized movement. 

“This project will benefit general consumers and beneficiaries of the PDS (Public Distribution System), besides generating substantial savings on labour costs, gunny bags and transportation,” the statement added. 

The said project, would be executed under the Design, Build, Finance, Operate and Transfer (DBFOT) mode. It will include hub silo complexes, which are silo complexes with container depots, and spoke silo complexes, which are silo complexes without container depots. 

After adding 3.50 lakh million tons storage capacity, AALL will have 15.25 lakh million tons of silo storage capacity in total, nearly across 24 locations in India.

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Adani Data Networks Gets License To Provide All Telecom Services

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Adani Data Networks Ltd (ADNL), being a part of Adani Enterprises Ltd, in its most recent 5G spectrum auction, won the right to use 400MHz of spectrum in the 26GHz millimetre wave band. It costed worth Rs 212 crore for a tenure 20 year

Adani Data Network Ltd (ADNL), received a unified license for access services. This will allow it to render all telecom services in the country, as per officials. 

Adani Group has now stepped in the telecom industry, after is acquired spectrum in a auction recently. The company was issued the permit on 10 October.

Adani Data Networks Ltd (ADNL), being a part of Adani Enterprises Ltd, in its most recent 5G spectrum auction, won the right to use 400MHz of spectrum in the 26GHz millimetre wave band. It costed worth Rs 212 crore for a tenure 20 year. 

A statement from the group said, “The newly-acquired 5G spectrum is expected to help create a unified digital platform that will accelerate the pace and scale of the Adani group’s digitisation of its core infrastructure, primary industry and B2C business portfolio.”

Earlier Adani Group had stated that it intends use the airwaves both for its data centres and the super application. Idea behind building such app is to help industries ranging from gas retail to ports and electricity transmission to airports. 

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Adani Green Energy Acquires 3 SPVs From Inox Green Energy

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Three special purpose vehicles (SPVs) acquired are Wind One Renergy Limited (WORL), Wind Three Renergy Limited (WTRL) and Wind Five Renergy Limited (SFRL). Both, Adani Green and Inox Wind informed the stock exchanges individually about the transaction which was settled in cash

Adani Green Energy Limited (AGEL) said that it acquired three entities from Inox Green Energy Services Limited (IGESL) each holding 50 MW operational wind power projects at Dayapar in Gujarat, on 10 October.

The three special purpose vehicles (SPVs) acquired by Adani Green Energy are Wind One Renergy Limited (WORL), Wind Three Renergy Limited (WTRL) and Wind Five Renergy Limited (SFRL).

Both, Adani Green and Inox Wind informed the stock exchanges individually about the transaction which was settled in cash. “The acquisition is expected to be value accretive to our shareholders,” said Adani Green.

Inox Wind during a filing said,”The company’s subsidiary, Inox Green Energy Services Ltd (IGESL), has sold its entire 100% shareholding in WORL, WTRL and WFRL at a cash consideration of ₹1.00 Lakh each.”

Back in 2019, Inox Wind secured 250 MW in SECI Tranche 1 auction at a fixed tariff of Rs 3.46 per unit for a period of 25 years for sale to PTC India.

“IGESL shall provide long-term operations and maintenance services for these projects,” said an official statement. IGESL is a subsidiary of Inox Wind.

In total the three SPVs generated a combined turnover of worth Rs121 crore in FY22 (WORL Rs 42.3 cr, WTRL Rs 42.2 cr and WFRL Rs 36.5 cr) said Adani Greens during its stock exchange filing.

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Adani Ports To Acquire Remaining 58.1% In Gangavaram Port, NCLT Approves Deal

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The agreement would include a share swap arrangement requiring the issuance of around 47.7 million APSEZ shares to the former promoters of Gangavaram Port. The deal finalised at Rs 6,200 crore

Adani Ports and Special Economic Zone Ltd (APSEZ) received approval from the National Company Law Tribunals (NCLT) at Ahmedabad and Hyderabad for the acquisition of the balance 58.1 per cent stake in Gangavaram Port Limited (GPL) on 10 October. Gangavaram Port is an all-weather deep-water multipurpose port. 

Adani Ports and Special Economic Zones is the flagship transportation business arm of the Adani group. Also, APSEZ is the largest private ports and logistics company of India. 

Early this year, APSEZ had acquired 31.5 per cent stake in the company from Warburg Pincus and 10.4 per cent from Andhra Pradesh government. 

The deal, would be carried further via composite scheme of arrangement which will make Gangavaram Port a 100 percent subsidiary of APSEZ. 

The agreement would include a share swap arrangement requiring the issuance of around 47.7 million APSEZ shares to the former promoters of Gangavaram Port. The deal finalised at Rs 6,200 crore. 

APSEZ’s CEO and Whole-time Director, Karan Adani said, “Acquisition of GPL is a key milestone in consolidating our position as India’s largest transport utility and in achieving East Coast and West Coast parity. Gangavaram Port has excellent rail and road network connectivity and is the business gateway to the hinterland spread over eight states. The recent addition of a container handling terminal will enable us to accelerate our growth of cargo volumes.”

Gangavaram Port, has no debt and stood with a cash balance of Rs 1,293 crore (as of March 2022). It is third biggest non-major port (excluding those controlled by Central government) in India. As per the reports, the “port has capacity of handling fully-laden super cape size vessels with nine berths and free hold land of 1,800 acres.” 

Currently, Gangavaram port holds capacity of handling 64 million tonnes (mt) of cargo. Its concession period runs through 2059. The port handles commodities like coal, iron ore, fertilizer, limestone, bauxite, sugar, alumina, and steel. 

APSEZ in a statement said, ” from APSEZ’s pan-India footprint, logistics integration, customer centric philosophy, operational efficiencies, and strong balance sheet to deliver a combination of high growth will benefit GPL. This all will be achieved by enhancing market share, adding more cargo types and improved margins and returns.”

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Adani Green Energy Stocks 20% Up On Heavy Volume

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Spitze Trade and Investment Limited being one of the promotors of AGEL acquired 4 million equity shares. Such shares represent 0.25 per cent of total equity of the company for Rs 935 crore.

Adani Green Energy (AGEL) shares rose 20 per cent to Rs 2,405 at the National Stock Exchange (NSE) during intra-day trade backed by great volumes on 30 September.

The stocks of Adani Group’s electric utilities company were traded 13 per cent higher at Rs 2,270, against 1.6 per cent rise in the Nifty 50, at 01:01 PM. On the counter, average trading volumes almost doubled totalling 3.8 million shares changing hands on the NSE and BSE.

As per previous trends, AGEL has underperformed and has seen market fall of 7 per cent, in comparison to 4 per cent decline in the Nifty 50. However, the stock jumped to a record high of Rs 3,048 on 19 April 2022.

One of the promoters of AGEL, Spitze Trade and Investment Limited acquired 4 million equity shares. Such shares represent 0.25 per cent of total equity of the company for Rs 935 crore. The purchase of the company effected through open market operations between September 15 and September 26, the exchange data show.

At the same time, AGEL through an announcement informed about the commissioning of 600 MW World’s largest co-located Wind-Solar Hybrid power plant ‘’Hybrid Power Plant’’ at Jaisalmer, Rajasthan on 29 September. The said plant has Power Purchase Agreements (PPA) with Solar Energy Corporation of India (SECI) at Rs 2.69/kwh for 25 years.

India’s first hybrid power plant with a capacity of 390 MW was operationalized by AGEL at Jaisalmer, Rajasthan in May 2022. And after the successful commissioning of 600 MW plant, AGEL now has a total operational generation capacity of ~6.7 GW including operational hybrid power generation capacity of 1 GW being the largest in the World. In total AGEL’s renewable portfolio of 20.4 GW well on the lines to reach its vision of 45 GW capacity by 2030, the company official said.

With an overall portfolio of 20.4 GW along with operating, under-construction and awarded assets catering to investment-grade counterparties, AGEL now has one of the largest global renewable portfolios.

The company’s portfolio includes owning, developing, building, operating and maintaining utility-scale grid-connected solar, wind farm and Hybrid plants. AGEL’s key customers list includes SECI, National Thermal Power Corporation (NTPC) and various State Discoms.

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Adani Enterprises Joins Adani Ports In 50 Stock Club

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Adani Enterprises would be replacing Shree Cements with its entry in Nifty 50 index. Today it has a market cap of Rs 4.1 lakh crore.

Aiming to establish diverse new businesses, Adani enterprises is all set to make entry in the Nifty 50 index from September 30. The flagship entity of Adani Group and an incubator would be replacing Shree Cements with its entry in the index.

After Adani Ports & SEZ, this will be the second Adani Group entity that will be a part of Nifty. Seven companies from the group already feature among the 50 biggest companies in India.

Despite Adani Enterprises drawing not much attention among Adani Group of companies, the returns it has delivered are good in numbers. Data of the last three years says, delivering around 2,400 percent returns made Adani Enterprises today the 11th biggest listed company in India with a market cap of Rs 4.1 lakh crore. During same period, Nifty 50 in total delivered meagre 46 percent returns.

Apart from Adani Enterprises’ unreasonable valuations, investors and analysts still continued to praise its business, says market experts. In media reports the company is termed as “the goose that lays golden eggs”.

The chairman and founder of Adani Group, Gautam Adani during his recent speech said that Adani Group foresee an investment of 100 billion dollars over coming decade keeping green energy space as priority.

Majorly it will come through Adani Enterprises via its subsidiary Adani New Industries Limited. The firm will be handling its venture into renewable energy, green hydrogen and downstream products like ammonia, urea and methanol.

Along with that, managing airports, data centres, building roads and defence equipment are some projects that Adani Enterprises covers. Analysts say, these businesses are on the verge of gaining momentum and should be value accretive in the short to medium term.

Also, Adani Enterprises will be seen in the Nifty 50 Shariah index. Whereas on the other hand, Adani Total Gas is being included in the Nifty100 Alpha 30 index and Adani Wilmar in Nifty500 Shariah index.

Ever since its entry on March 27, 2020 until its exit, Shree Cement could deliver 21 percent returns only. However, it should be noted that during this period the Indian economy was not performing well due to the pandemic, which negatively impacted many other stocks too.

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Adani Enterprises Knocks Out Shree Cement From Nifty50

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Shares of Adani Enterprises have climbed by nearly 88 percent this year, whereas the shares of Shree Cement have slumped by 21 percent.

Recently, the National Stock Exchange of India (NSE) announced that the Gautam Adani-led Adani Enterprises will be included in the flagship index Nifty50. Adani Enterprises will replace Shree Cement on the benchmark index on September 30.

Adani Enterprises is the major company of the Adani Group, while Shree Cement, the largest manufacturer of cement, is the owner of various brands including Roofon, Bangur Power, Shree Jung Rodhak, Bangur Cement, and Rockstrong.

After Adani Ports and Special Economic Zone, this will be the second Adani stock to be listed in the Nifty index. According to prior projections by Edelweiss Alternative and Quantitative Research, the inclusion of the Adani Group firm into Nifty might result in $183 million in stock inflows.

Shares of Adani Enterprises have climbed by nearly 88 percent this year, whereas the shares of Shree Cement have slumped by 21 percent.

Meanwhile, Gautam Adani, the CEO of Adani Group, just surpassed Louis Vuitton Chairman and CEO Bernard Arnault to become the first Asian to rank in the top three on the Bloomberg Billionaires Index.

Adani, the Indian businessman, is now the third richest person in the world with a net worth of $143 billion. Only Elon Musk ($245 billion) and Jeff Bezos ($150 billion) are ahead of Adani. In 2022, he increased his wealth by $66.2 billion, five times more than any other billionaire. In February, Adani passed Mukesh Ambani to become the richest person in Asia, hastening his ascent to the top.

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