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Adani Cement Refinances $3.5 Bn From 10 International Banks

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DBS Bank, First Abu Dhabi Bank, Mizuho Bank and MUFG Bank acted as Mandated Lead Arranger and Bookrunners and Underwriters to the transaction

Adani Cement, a subsidiary of the Adani Group, has completed a refinancing program, securing a financing package of USD 3,500 million from 10 international banks.

According to a press release by Adani Group, the refinancing, executed through Endeavour Trade and Investment Ltd, is aimed at terming out the acquisition finance facility for Ambuja and ACC, two major cement brands in India, by a tenor of 3 years.

The refinancing program underscores Adani Cement’s robust access to the global financial market and its strong liquidity position.

The funds have been raised from a group of international banks and will result in an estimated cost saving of approximately USD 300 million for Adani Cement.

This achievement aligns with Adani Cement’s commitment to financial stability and growth.

Adani Cement, currently the second-largest cement player in India, completed the acquisition of Ambuja and ACC, valued at USD 6.6 billion, in September 2022.

This acquisition marked a significant milestone in the infrastructure and materials sector. The refinancing initiative forms a part of Adani Cement’s capital management plan outlined in September 2022, focusing on stepwise deleveraging.

The refinancing deal was orchestrated by several leading banks including DBS Bank, First Abu Dhabi Bank, Mizuho Bank, MUFG Bank, Barclays Bank PLC, BNP Paribas, Deutsche Bank AG, ING Bank, Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank.

Cyril Amarchand Mangaldas and Latham and Watkins acted as Borrower’s counsel for the financing, while Allen & Overy LLP and Talwar Thakore and Associates served as legal counsels to the lenders.

Adani Cement’s acquisition of Ambuja and ACC positioned it with a combined installed production capacity of 67 million metric tonnes per annum (MTPA), with plans to expand to 100 MTPA by 2025, including the recently announced acquisition of Sanghi Cement.

The integration of these brands with the Adani infrastructure platform has significantly improved operational efficiencies, leading to an increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to INR 1,253 per ton in the quarter ending June 2023, compared to INR 340 per ton immediately after the acquisition in September 2022. (ANI)

 

 

 

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Disney in talks with Gautam Adani to sell its Indian assets: Reports

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Text contentAfter losing the streaming rights to the Indian Premier League cricket event to Viacom18 Media in July, it was reported that Disney has been considering strategic options for its business in India, including an outright sale or the formation of a joint venture

Walt Disney Co. is in exploratory talks with potential purchasers for its Indian streaming and television operations, including billionaires Gautam Adani and Kalanithi Maran, according to various media reports.

Senior executives at the US entertainment giant are also said to be evaluating the interest of private equity funds in light of the fact that the company is considering a number of options, some of which could involve selling a portion of the Indian operations or a combination of the unit’s assets, including sports rights and regional streaming service Disney+ Hotstar.

Reliance Industries, owned by Mukesh Ambani, has already been the subject of asset sale negotiations, according to a previous report.

After losing the streaming rights to the Indian Premier League cricket event to Viacom18 Media in July, it was reported that Disney has been considering strategic options for its business in India, including an outright sale or the formation of a joint venture. Reliance, Paramount Global, and Uday Shankar’s investment company Bodhi Tree Systems are partners in the joint venture of Viacom.

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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 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 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 Green Commissions World’s Largest Wind-Solar Plant

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Hybrid plants comes with capacity to reduce intermittency of renewable energy power and help the country in adequate utilisation of transmission network. The project consists of 600 MW solar and 150 MW wind plants.

Adani Green Energy Ltd (AGEL) said it has commissioned 600 MW capacity wind-solar power plant of in Jaisalmer, Rajasthan, on 29 September. It is the world’s largest wind-solar power plant, said the official of AGEL.

As per a company statement, the said plant has a power purchase agreement with Solar Energy Corporation of India (SECI) at Rs 2.69/kwh for 25 years.

With the capacity to reduce intermittency of renewable energy power it will also help the country in adequate utilisation of transmission network. The project consists of 600 MW solar and 150 MW wind plants, the statement added. AGEL functionalised first hybrid power plant in India with a capacity of 390 MW, this year in May 2022 at Jaisalmer.

The company now has total operational generation capacity of 6.7 GW along with operational hybrid power generation capacity of 1 GW making it the largest in the world, it said. AGEL’s total renewable portfolio of 20.4 GW seems well on track to reach its vision of 45 GW capacity by 2030 with this move.

AGEL’s two subsidiaries namely Adani Hybrid Energy Jaisalmer Two Ltd (AHEJ2L) and Adani Hybrid Energy Jaisalmer Three Ltd (AHEJ3L) covers the 600 MW hybrid plant.

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Adani Group To Invest Over $100 Bn In Next Decade: Gautam Adani

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Among other investment plans, Adani said that his group plans to raise renewable portfolio by another 45 GW of hybrid renewable power generation and invest USD 70 billion in integrated green hydrogen-based value chain

Adani Group will invest more than USD 100 billion in the next decade, Chairman Gautam Adani, the world’s second-richest person, told a Forbes Global CEO Conference in Singapore. “As a group, we will invest over USD 100 billion of capital in the next decade,” he said this week.

 “We have earmarked 70 per cent of this investment for the energy transition space. We are already the world’s largest solar player, and we intend to do far more,” he added.

While laying out the investment roadmap, Adani said that the real ‘India growth story’ is just starting.

“This is the best window for companies to embrace India’s economic resurgence and the incredible multi-decade tailwind the world’s largest and most youthful democracy offers. India’s next three decades will be the most defining years for the impact it will have on the world,” he added.

Among other investment plans, Adani said that his group plans to raise renewable portfolio by another 45 GW of hybrid renewable power generation and invest USD 70 billion in integrated green hydrogen-based value chain.

It will also build 3 Giga factories – one for a 10 GW silicon-based photovoltaic value-chain that will be backward-integrated from raw silicon to solar panels, a 10 GW integrated wind-turbine manufacturing facility, and a 5 GW hydrogen electrolyser factory.

“Today, we can confidently state that we have a line of sight to first – become one of the least expensive producers of the green electron – and thereafter – the least expensive producer of green hydrogen,” he said.

On digital transformation, Adani said that the Indian Data Center market is witnessing an explosive growth but consumes more energy than any other energy. He said that building green data centres will be a game-changer.

“We will interconnect these data centers through a series of terrestrial and globally linked undersea cables drawn at our ports and build consumer based super-apps that will bring the hundreds of millions of Adani’s B2C consumers on one common digital platform. Once done, the monetisation possibilities are endless,” he said.

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India’s Ambuja Cements Touches Record High On Adani Deal

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On Friday, Indian billionaire Gautam Adani, took over as chairman of the company, following the Adani Group’s takeover

Shares of India’s Ambuja Cements (ABUJ.NS) jumped over 10% to an all-time high on Monday, as the company said it would raise 200 billion Indian rupees ($2.51 billion) through an issue of convertible warrants to an Adani Group company.

On Friday, Indian billionaire Gautam Adani, took over as chairman of the company, following the Adani Group’s takeover.

“There was a significant infusion of 200 billion rupees into the business. And, ambition being shown to become the largest and the most efficient player by 2030,” said Vikram Kasat, head advisory at Prabhudas Lilladher.Advertisement · Scroll to continue

Jefferies upgraded its rating on Ambuja to “buy” and set the target price at 620 rupees, while Investec raised the target price to 752 rupees.

Analysts at Jefferies said they now value Ambuja’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), one notch higher than the target multiple for rival UltraTech Cement Ltd (ULTC.NS).

Gautam Adani, with a net worth of $154 billion, is currently ranked second-richest in the world, behind Elon Musk, according to Forbes.Advertisement · Scroll to continueSponsored by IBMWant to simplify data governance?Connect to the right data at the right time and build a business-ready data foundationLearn moreReport an ad

On Saturday, Adani said the company expected to raise the production capacity to 140 million tonnes by 2027 from 70 million tonnes currently.

The Adani group ventured into cement-making operations earlier this year with its $10.5 billion acquisition of Holcim AG’s (HOLN.S) cement businesses in India – Ambuja Cements Ltd and ACC Ltd (ACC.NS).

Shares of ACC also rose after Adani’s son Karan was made chairman of the board. 

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