Adani group stock: Why Adani Green Energy shares will be in focus today
Shares of Adani Green Energy Ltd are expected to draw investor attention today following significant developments within the Adani group.
Adani group’s Chief Financial Officer, Jugeshinder Singh, said that they may consider reviving their previously scrapped dollar bond between April and June next year. However, this decision will depend on clarity from ongoing investigations. The group is also exploring the possibility of public bond sales for other firms within the year, Singh said during his first media interaction since allegations against the Adani group surfaced.
The Adani group had earlier withdrawn its $600 million bond offering amid accusations by US authorities, which claimed the group defrauded US investors. These allegations contributed to a market value loss of $34 billion for the conglomerate.
“Once we find clarity, we’ll revive the dollar bond sale,” said Singh as reported by Bloomberg.
Adani Green Energy is planning to raise up to $500 million by February 2025, reported Bloomberg. This will be done through banks or private placements in the offshore market. Despite recent challenges, Singh confirmed that the group does not intend to halt any planned acquisitions or capital expenditure.
STRONG FINANCIAL POSITION
The Adani group holds $6.3 billion in cash and expects to generate an additional $7 billion over the next year. After offsetting $3 billion in repayments, the group projects a surplus of $10 billion, Singh told Bloomberg. Singh stated, “The banking and US markets can shut down tomorrow. We don’t care. Whatever happens, we will continue. We will make investments from the money we earn ourselves.”
He also said that the group’s financial strength has reassured its banking partners and investors. “Fundamentally, our banking partners and investors understand we don’t need their money, which is why it remains available to us,” Singh said.
Shares of Adani Green Energy rose by 20.64% last week, reflecting renewed investor interest. However, the stock remains down by 17.88% over the past month, as concerns persist following the allegations and the bond offering’s withdrawal.
CLARIFICATION ON BRIBERY ALLEGATIONS
In response to recent accusations by US authorities, Adani Green Energy clarified that Azure Power Global and CDPQ officials were charged with bribery under the US Department of Justice (DoJ) indictment, not Adani group executives.
The company issued a statement addressing media reports.
In its statement to the stock exchanges, AGEL said, “Mr. Gautam Adani, Mr. Sagar Adani, and Mr. Vneet Jaain have not been charged with any violation of the FCPA in the counts set forth in the indictment of the US Department of Justice (DOJ) or the civil complaint of the US Securities and Exchange Commission (SEC). The charges against them include alleged securities fraud conspiracy, wire fraud conspiracy, and securities fraud.”