Aditi Singh 
The Gautam Adani-led global conglomerate, the Adani Group, has recently embarked on multiple overseas roadshows to gain investors’ confidence around its business before fresh bond sales. This will help the Adani Group recover from the losses it suffered during the rumours of the Adani scandal. It is also going to help the Group return to the international bond market after the crisis. This step taken by Gautam Adani is also a great move to bring his conglomerate back to its original state of financial stability.
Adani’s Plans for The Roadshow:
Adani Green Energy Limited, which is one of the wholly-owned subsidiaries of the Adani Group, has recently mentioned that it is looking forward to raising around 409 million USD via dollar bonds with a door-to-door tenor of 18 years. The proceeds from the sale will be used for refinancing the 500 million USD, 6.25 % senior secured notes during the year 2024. This was sold on June 10, 2019. The roadshow is a part of the efforts being made by the conglomerate to make the investors aware of its ability to deal with its debt obligations through operational efficiency, extraordinary financial planning, and strategic asset modernisation initiatives. The roadshows will also allow the Adani Group to address the doubts about the Adani scandal that blocks in the minds of the investors.
The senior management of the Adani Group has already met investors in London. It plans to hold similar interactions with investors in the US, Canada, the Middle East, Asia, and Europe. The roadshows will include interactive sessions and presentations. The sessions will be strategically designed to drive the interest of overseas stakeholders in the happenings of the Adani Group. It will also provide insights into the Adani Group’s financial stability, operational performance, and growth prospects. The Adani Group already has 1.9 billion USD in foreign currency bonds due in 2024. It has already settled a huge part of this debt by various means.
How Will the Adani Group Drive the Interest of the Investors Through the Roadshow?
The roadshow is going to be led by some of the key financial advisors and executives of the Adani Group. It will offer clarity to the investors on Adani Group’s debt management strategies, its repayment schedule, and liquidity position. This is going to encourage the investors to make further investments in the proceedings of the Adani Group. This will enable the global conglomerate to carry out its various project operations with full force. During the engagements with the investors, the Adani Group will also provide an outline of its expansion plan for some of its most important verticals, including infrastructure, ports, airports, and renewable energy.
The Adani Group has already sent a message to its investors by means of regulatory filings that it is currently working on creating a liquidity pool of cash and cash equivalents. Using this cash equivalent, it will be repaying the 750 million USD of Adani Green’s holding company bonds, which were sold in 2019 and are maturing in September next year. The Group is also planning to pay in cash a 650 million USD bond tranche of Adani Ports and Special Economic Zones, which is due in July 2024. The conglomerate has already paid 325 million USD this year. Its top bondholders include Fidelity, MetLife, Blackrock and PIMCO.
Ambitious Plans for The Future:
Looking at the way the Adani Group has made plans for its investments in the next five to seven years, its overseas borrowings will go up significantly. In an announcement made in January 2024, the key officials of the Adani Group mentioned that it has already spent INR 2.5 lakh crore across its various business sectors. It is already in the process of building the largest green energy park in Khavda, Gujarat. The renewable energy park will spread across 725 square km and will have a capacity of 30 GW. For Telangana, the Group has already committed to invest INR 12,400 crores in the next five years. This includes an investment of INR 5,000 crore for setting up two storage projects of 1,350 MW and a data centre with a total capacity of 100 MW.
Conclusion:
The ability of the Adani Group to pay back its loans even when the opposition was accusing the conglomerate of Adani scandal shows its extraordinary financial resistance even during times of difficulty. This has indeed helped the Adani Group in getting back to its former state of glory. With India’s rapidly growing industrial requirements and the government’s focus on global initiatives such as port development and the adoption of green energy, the Adani Group plans to make the most out of emerging opportunities and solidify its position as one of the most prosperous conglomerates on a global scale.
