Adani Group plans to sell 5% stake in Adani Power and Ambuja Cements

The Adani Group is considering selling up to 5 per cent of its stake in both Adani Power and Ambuja Cements, according to a recent report by CNBC Awaaz. This move aims to reduce the conglomerate's substantial debt and manage its leverage more effectively.

As of the end of the June quarter, the Adani Group holds a significant share in these companies: 72.71 per cent in Adani Power and 70.33 per cent in Ambuja Cements. The planned stake sale would see a reduction of these holdings by 5 per cent each. CNBC Awaaz reported that the shares may be sold through mechanisms such as an Offer for Sale or Block Deals. The sale could raise between Rs 15,000 to 20,000 crore, with proceeds likely allocated towards debt repayment.

Following the news, Adani Power's stock experienced a dip of 3.34 per cent, reaching Rs 671.90 by the end of market hours. While Ambuja Cements' share price increased by 1.63 per cent, closing at Rs 639.5. In 2024, Ambuja Cements' stock has risen by nearly 18 per cent, while Adani Power shares have surged by about 30 per cent.

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On August 5, Adani Energy Solutions announced that it successfully raised Rs 8,373 crore ($1 billion) through a Qualified Institutional Placement (QIP). The QIP, launched after market hours on July 30, initially had a base deal size of Rs 5,861 crore ($700 million) and included a green shoe option, allowing it to scale up to Rs 8,373 crore ($1 billion), as detailed in the company's exchange filing.

Earlier in July, Adani Group promoters increased their stakes across five of its companies, investing over Rs 23,000 crore in the June quarter. This includes Adani Energy Solutions, Adani Enterprises, Ambuja Cements, Adani Power, and Adani Green Energy. Specifically, the promoter's stake in Ambuja Cements rose by 3.59 percentage points to 70.33 per cent from 66.74 per cent earlier. The Adani Group has not yet commented on this latest development.