The promoters will pare stakes in some listed firms while increasing them in others, according to people with knowledge of the matter. The final aim of this rebalancing exercise is to hold 64-68% stake across firms. The stake sale will begin with Ambuja Cement and Adani Power while the holding will be increased in Adani Green Energy.
Over the next decade, the promoter family wants to mimic the shareholding structure of large US-listed utility companies that have a mix of retail, long-only shareholders other than mutual funds.
“Based on volume and price, roughly half a percent to 3% of the overall promoter stake will be traded every year as a part of the portfolio management and balancing aspect,” said one of the persons cited. The Adani Group did not respond to queries.
Process Begins
The promoters are initiating the exercise with a sale of 2.8% stake in Ambuja Cement for $500 million that could take place through a block deal on Friday.This could be followed by another block deal of a similar amount in the cement company in the next few months, the people said. The Adani family is also looking to sell around 3% of Adani Power before the year-end. They’re looking to generate ₹8,000-10,000 crore from this.
The family will increase its stake in Adani Green Energy, of which it currently holds 57.5%. Initially, the family is likely to raise its stake by 3% in the next few weeks as it doesn’t want to create volatility in the scrip.
Incidentally, Adani Wilmar will look to pare the promoter stake this month from 87.87% to 75% because of exchange regulations. These mandate that companies need to have a minimum free float of 25%. Adani and Wilmar have 43.94% stake each in the company. The offer for sale is likely to happen before the end of September, sources said.
The promoters have not yet taken a final decision on how they intend to dispose of stakes in various companies.
The group has loan repayments to the tune of $3.1 billion on debt raised from international banks for the acquisition of Ambuja and ACC. When these are due, it’s likely to refinance the debt with fresh borrowings rather than pay down the debt. Currently, dividends are used to part-pay loans.
Last month, Adani Energy Solutions raised $1 billion through a qualified institutional placement (QIP), the first fundraising after the Hindenburg Research accusations last year. In May this year, the board of Adani Enterprises approved raising up to Rs 16,600 crore through a QIP.
Early in 2023, US-based short seller Hindenburg had accused the Adani Group of fraud and stock price manipulation, which led to shares plummeting, wiping off as much as $150 billion in market capitalisation at one point. The shares have recovered since then. Following these allegations, Adani Enterprises called off its ₹20,000 crore follow-on public offer, even though it was oversubscribed.
