Gautam Adani To Sell Stake In Cement Business For $450mn To Reduce Debt: Report

Adani is looking to sell 4-5 per cent stake in Ambuja Cement to international lenders, reported Financial Times quoting sources. It is done as part of debt reduction to restore investor confidence in the conglomerate reeling from allegations made by US short seller Hindenburg Research.

Earlier this week, Bloomberg reported that Adani Group has repaid a $500-million bridge loan that was due on March 9.

More shares belonging to some Adani Group companies have been encumbered, SBICap Trustee said Wednesday.

SBICap Trustee said in a notice to exchanges that a further 0.99% shares in Adani Green Energy Ltd. were pledged “for the benefits of the lenders" of Adani Enterprises Ltd. An additional 0.76% shares in Adani Transmission Ltd. were also pledged to banks, the trustee said.

Earlier, investment firm GQG Partners has bought stake worth ₹15,446 crore in three Adani Group Companies through block deals, marking the first major investment in the group since US short-seller's explosive report sparked a stock rout.

GQG Partners had investments in Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Transmission Limited and Adani Enterprises Limited.

After taking a beating on the bourses following a report by US-based short seller Hindenburg Research, the group stocks have recovered in the last few trading sessions.

The report had made a litany of allegations, including fraudulent transactions and share-price manipulation, against it.

Adani, led by billionaire Gautam Adani, has rejected the allegations and denied any wrongdoing.

Last year, in a $10.5-billion deal, Gautam Adani's Group has completed the acquisition of major Indian cement players, Ambuja Cements and ACC. The Group has now become the second largest cement player in the country.

Holcim closed the deal with Adani Group on Friday by selling its entire stake in Ambuja Cements at ₹385 per share and in ACC at ₹2,300 per share. The cash proceeds aggregated to 6.4 billion dollars for Holcim.

On Friday, the shares of Adani Enterprises ended 2.90% lower at ₹1,896.45 on BSE.