Mumbai: Billionaire Gautam Adani-led ports-to-green energy conglomerate Adani Group is looking to invest Rs 7 trillion ($84.00 billion) in infrastructure projects over the next ten years, reported Reuters Chief Financial Officer Jugeshinder Singh on Friday.
Singh mentioned that the capital expenditure (capex) would increase for the development and operation of infrastructure, although he did not provide specific details about the projects.
The conglomerate, known for its involvement in ports and power, currently operates Indias largest private port and is actively engaged in the development and management of various airports and roads.
During an event in Mumbai, Singh also revealed that the Adani Group, led by billionaire Gautam Adani, is contemplating the divestment of its stake in Adani Wilmar, a joint venture with Singapores Wilmar International, the Reuters report said.
This decision is expected to be made within the next three months. Adani Group presently holds a 44% stake in the joint venture, and there have been considerations for a potential stake sale for some months, the report said.
Reports suggest that Gautam Adani and his family might retain a minority stake in a personal capacity. Adani Wilmar faced a second consecutive quarterly loss in November.
Following a report by Hindenburg Research on January 24, which raised concerns about debt levels and the use of tax havens, Adani Groups listed entities suffered a substantial loss of nearly $147 billion in market capitalization.
The group, however, has refuted all allegations.
In response to inquiries about the impact on the companys cost of funds since the Hindenburg allegations, Singh stated that the weighted average cost of capital for the core infrastructure business has consistently remained between 9.25% and 9.50%.
Approximately 80% of the companys capital with longer durations is sourced from the global capital market, while the remaining 20% of capital with shorter durations is obtained from the domestic market, according to Singh, Reuters reported.
Adani Group companies such as Adani Ports and SEZ, Adani Green Energy, Adani Power, and specific segments within Adani Enterprises, such as airports and roads, may consider accessing the domestic bond market shortly. Singh, however, did not provide specific details regarding the amount or timeline for this initiative.
The group is also considering the possibility of a public bond issue starting in February.
For Adani Green Energy and Adani Transmission, plans include tapping into the overseas bond market and issuing both Regulation-S and Regulation-D bonds in 2024. Singh mentioned that Adani Green Energy is looking to raise $350 million through notes to refinance existing debt maturing in December 2024.
