Asias richest man makes A $5 billion bet to silence critics, naysayers Gautam Adani's plan to raise at least $5 billion in equity aims to shut down two of the most frequent criticisms leveled against the Indian tycoon's swelling empire: high debt ratios and a limited investor base.
An equity injection of this size is expected to help the conglomerate deleverage and Bloomberg Intelligence sees a successful equity raise across the group supporting the companies' dollar bonds.
“The fundraising exercise by Adani Group is putting the naysayers in place,” said Sanjiv Bhasin, Director at Mumbai-based brokerage IIFL Securities Ltd. “He is embarking on a new fund drive that will boost the credibility of the group and allay the fears of investors.”
They are at the right place at the right time.”
A successful outcome for the tycoon would be to pull off something similar to fellow Indian billionaire Mukesh Ambani, who raised more than $27 billion in 2020 by selling stakes in units of Reliance Industries to global investors of the likes of Meta Platforms Inc. and Google's parent, Alphabet Inc. Anish Teli, managing partner at QED Capital Advisors LLP in Mumbai, said Adani's expected share sale will be the first of many as the conglomerate drives into new industries.
--With assistance from Ashutosh Joshi, Baiju Kalesh, Dinesh Nair, Manuel Baigorri and Menaka Doshi.

Source - NDTV

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