This image is used for representational purpose only.
| Photo Credit: Reuters

New Delhi:

Kutch Copper Ltd, part of Adani Group, has joined the International Copper Association (ICA) as its newest member. Headquartered in Washington DC, ICA is a not-for-profit trade association representing half the world’s copper production, with 33 members across six continents.

Strategically located in Mundra, Gujarat, Kutch Copper is a fully owned subsidiary of Adani Group’s flagship incubator Adani Enterprises.

Adani Enterprises is investing approximately $1.2 billion to establish a copper smelter with an initial capacity of 0.5 million tonnes per annum (MTPA) in the first phase. Kutch Copper’s state-of-the-art facility will also produce copper cathodes, rods, and other byproducts, significantly contributing to India’s goal of becoming self-reliant in copper production.

Vinay Prakash, Managing Director of Kutch Copper, shared his optimism about joining the ICA.

“India is poised to become a significant hub for copper and its products in the coming decades. We believe that Kutch Copper’s membership in the ICA will allow us to actively contribute to sustainability initiatives and develop innovative applications and products within the copper sector. We look forward to collaborating with the global copper community to enhance the value chain for this essential metal, which plays a vital role in the transition to net zero,” Mr Prakash said in a statement.

ICA President and CEO Juan Ignacio Diaz expressed enthusiasm for the new partnership.

“We are delighted to welcome Adani Metals Kutch Copper Ltd to our community. Their efforts in advancing sustainable and innovative copper production strengthen our collective mission to promote, protect, and defend copper’s essential role in enabling the technologies and infrastructures needed for global decarbonization. With their presence, we are particularly excited to support copper’s growth in regions where its key applications are expanding.”

ICA Chairman of the Board, Glencore’s Stephen Rowland, added, “KCL’s membership in ICA strengthens our commitment to promoting sustainable practices and developing new applications for copper. We are excited to collaborate with them and support their efforts to drive positive change in the industry.”

Upon the successful completion of the second phase, which will add an equivalent capacity, Kutch Copper will achieve a total capacity of 1 MTPA, positioning it as one of the largest single-location custom copper smelters globally.

The company is committed to maintaining high environmental, social, and governance (ESG) performance standards while leveraging advanced technology and digitalisation. Kutch Copper is working towards adding copper tubes to its portfolio as part of its forward integration strategy.

The ICA is the voice of copper and works to promote the copper story, protect its markets and defend and sustain its demand.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

U.S. investment banker JP Morgan has given ‘overweight’ rating on four Adani group bonds, comforted by ability to scale and grow using internal cash flows which reduces the scope for credit stress.

Also read: Fitch places some Adani bonds on negative watch after U.S. bribery charges

In a report, JP Morgan gave ‘overweight’ rating on three bond issues of Adani Ports & SEZ and one by Adani Electricity Mumbai Ltd (a subsidiary of Adani Energy Solutions Ltd). It has taken neutral stand on other five Adani bonds and is underweight on one bond issued by Adani Green Energy Ltd.

JP Morgan gives three kinds of ratings for bonds – ‘Overweight’ rating which falls into a buy rating category; Neutral rating which falls into a hold rating category; and ‘Underweight’ which rating falls into a sell rating category.

Under the risks section, it said that Adani bonds could do well than anticipated if there is a quick resolution of the US SEC and Department of Justice indictments of founder chairman Gautam Adani and key aides on bribery charges, successful refinancing of the upcoming bonds and credit facilities; and improved operating performance.

Adani group has denied as baseless the charges brought against it by the US authorities.

‘Initial volatility settled’

After initial volatility, “spreads of the group’s bonds, (since action by US authorities), seem to have settled, widening by about 100-200 basis points, with short tenor seeing more spread widening due to higher dollar prices,” JP Morgan said.

Stating that it has tabulated a few near-term maturities for offshore debt at various Adani group companies, including Adani Ports, Adani Green, Adani Airport Holdings (100 per cent owned by Adani Enterprises), Ambuja Cement bidco (business and industrial development corporations) entities and Adani Energy Solutions, it said, “Overall, we take varying degrees of comfort, and believe that key to watch among the bond-issuing entities are mainly Adani Green, which has a decent-size loan (USD 1.1 billion) due in March 2025.” It said the bonds may not be backed by any security, but are backed by solid cashflows.

“Our preference is for cashflows over security,” said Love Sharma of JP Morgan in the report.

“Even in the case of some secured bonds, decent distribution is allowed under covenants and, hence, cash cannot be treated entirely as trapped. The ability to scale and grow using internal cash flows in the case of Adani Ports gives us strong comfort on the intrinsic equity value of such a business, which in turn reduces the scope for credit stress,” the report said.

Key upside risks to its Neutral rating are “if there is a quick resolution of the SEC/DoJ charges; successful refinancing of the upcoming bonds and credit facilities; and improved operating performance,” the report said.

Key downside risks to its ‘overweight’ and ‘neutral’ ratings are an adverse outcome from the SEC/DoJ indictment and jury trial; any related-party transactions within the group and promoter entities; and debt-funded M&A or capex-led growth leading to weaker credit metrics, it added.

This grab from a video released by Adani Enterprises Ltd. on Thursday, Feb.2, 2023, shows Indian billionaire Gautam Adani.
| Photo Credit: AP

Adani Enterprises Ltd opened at ₹2,101, which is 3.8% lower than the previous close on the National Stock Exchange, as the Kenyan government cancelled Adani Group projects in response to the U.S. court’s allegations of bribery and fraud. The stock dip immediately moderated reaching ₹2,122 by 10:30 a.m.

On the Bombay Stock Exchange (BSE), the stock opened at ₹2,090.10, which was 4.2% lower than the previous close, but reduced the dip and gained hitting ₹2,117.45, roughly at the same time.

Stocks of the Apple to airport conglomerate plummetted more than 10% on November 21, following the New York district court allegations like bribery, wire fraud, securities fraud and obstruction of justice were placed on Gautam Adani, the Chairperson promoter of the group, his nephew Sagar Adani and other board of directors of the company.

The company however called the allegations baseless, denied them and further said that they would use all possible legal recourse in a statement to the exchanges on November 21.

The logo of the Adani Group.
| Photo Credit: Reuters

Stocks of Gautam Adani’s seven listed companies on the bourses crashed on opening after the New York Eastern district court indicted Gautam Adani, Sagar Adani, Vineet S. Jain and their associates and bribery and securities fraud on Thursday (November 21, 2024).

Adani Energy Solutionns fell 20% to ₹687.5 apiece the most on Thursday’s open. Adani Enterprises crashed 10% opening at ₹2539.35 a share on Thursday. Adani Ports and Special Economic Zones crashed 10% to ₹1670 per stock. Adani Power Limited stocks fell nealry 11% to ₹467.4 apiece.

Follow Gautam Adani U.S. indictment LIVE updates on November 21

Adani Green Energy fell 16% to ₹1184.25 a share and Adani Total Gas dipped 12% to ₹589.9 per share.

The apple to airports conglomerate’s FMCG stock Adani Wilmar too took a beating opening ₹310, 8% below previous close.

Sensex, Nifty tumble in early trade

Equity benchmark indices Sensex and Nifty tumbled in early trade on Thursday amid sharp fall in Adani group stocks and unabated foreign fund outflows. In the equity market, the BSE benchmark Sensex traded 536.89 points lower at 77,041.49 and the NSE Nifty quoted 186.75 points down at 23,331.75.

From the 30-share Sensex pack, Adani Ports tumbled 10% as billionaire Gautam Adani has been charged by U.S. prosecutors over his role in an alleged years-long scheme to pay $250 million bribe to Indian officials in exchange for favourable terms for solar power contracts.

Adani group stocks’ combined mcap erodes by ₹2.45 lakh crore

Adani group stocks faced heavy drubbing during the morning trade on Thursday, with the combined market valuation of all the listed firms getting eroded by ₹2.45 lakh crore.

The stock of the group’s flagship firm Adani Enterprises plunged 22.99%, Adani Ports dived 20%, Adani Energy Solutions tanked 20%, Adani Green Energy plummeted 19.53% and Adani Total Gas tumbled 18.14% on the BSE.

Some of the group firms also hit their lowest trading permissible limit for the day.

(With inputs from PTI, Reuters)

Ahmedabad:

Adani Enterprises, the flagship entity of Adani Group, on Tuesday reported that its net profits during the July-September quarter rose 664 per cent to Rs 1,741 crore. In the year 2023, it was at Rs 228 crore.

So far in the two quarters of 2024-25 – April-June and July-September, the net profits cumulatively were 254 per cent up at Rs 3,196 crore.

Adani Enterprises Ltd announced its results today for the quarter and half year ended September 2024.

Coming to the company’s total income or the revenue from operations, the July-September quarter saw a rise of 15 per cent to Rs 23,196. April-June and July-September combined, the total income was 14 per cent higher at Rs 49,263 crore.

Adani Enterprises has recorded its highest half-yearly EBITDA of Rs 8,654 crore, which the company said is consistently supported by strong performance from emerging core infra businesses under its “incubation portfolio”.

“Adani Enterprises Ltd (AEL) continues to focus on investing in logistics, energy transition and adjacent sectors that are core to the economic growth of the country. This record-breaking half-year performance has been led by Adani New Industries Ltd (ANIL) and Adani Airport Holdings Ltd (AAHL) with their rapid growth in capacity additions and asset utilisation,” said Gautam Adani, Chairman of the Adani Group.

“Our focus on execution of greenfield projects in ANIL across three giga-scale integrated manufacturing plants and the accelerated development of Navi Mumbai International Airport are driving these robust results. Further, AEL is poised to repeat this turbo growth across data centres, roads, metals & materials and specialized manufacturing. AEL continues to invest in innovative technology across its platforms to support this high growth phase,” Gautam Adani added.

Adani Enterprises Limited (AEL) is the flagship company of Adani Group, one of India’s largest business organisations. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses, contributing to nation-building and divesting them into separate listed entities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

Ahmedabad:

Adani Enterprises Limited (AEL) on Thursday said it has completed the qualified institutional placement (QIP) of equity shares of face value of Rs 1 each of AEL (“Equity Shares”) aggregating to approximately Rs 4,200 crores ($500 million).

According to Adani, a total of 1,41,79,608 Equity Shares were allocated at an issue price of Rs 2,962 per equity share through the QIP.

The transaction was launched post-market hours on 9 October 2024 with a deal size of approximately INR 4,200 crores ($500 million) and closed on 15 October 2024.

The QIP saw overwhelming demand, receiving bids of approximately 4.2x of the deal size from a diverse group of investors, including global long-only investors, major Indian mutual funds, and insurance companies.

This underscores AEL’s position as India’s largest listed incubator of scalable and large businesses in core infrastructure which addresses the needs of India.

AEL’s current incubation portfolio includes airports and roads in the transport and logistics sector, new energy ecosystem (including solar and wind manufacturing) and data centres in the energy and utility sector. AEL’s other businesses including copper, PVC, defence and specialized manufacturing, focus on import substitution and address India’s vision of Atmanirbhar Bharat.

The proceeds from the QIP will be utilized for funding capital expenditure, debt repayment and general corporate purposes. SBI Capital Markets Limited, Jefferies India Private Limited and ICICI Securities Limited were the book-running lead managers for the Issue (“BRLMs”).

Further Cantor Fitzgerald & Co. acted as an advisor in connection with the issue. Cyril Amarchand Mangaldas acted as Legal Counsel to AEL as to Indian law and Trilegal and Latham & Watkins LLP acted as Legal Counsels to the BRLMs as to Indian law and International law, respectively.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

New Delhi:

The Adani Group has called a report in a Swiss media outlet an “orchestrated and egregious attempt by the same cohorts acting in unison” to harm the Group’s reputation and market value.

US short seller Hindenburg Research in a post on X claimed that Swiss media outlet ‘Gotham City’ accessed Swiss criminal court records to allege an “Adani frontman invested in opaque… funds that almost exclusively owned Adani stocks…”

The Adani Group in a statement called the allegations baseless, preposterous, irrational and absurd.

“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” the Adani Group said in a statement.

“Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” the Adani Group said.

“These allegations are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” it said.

“Baseless, Irrational, Absurd Allegations”: Adani Group On Swiss Media Report pic.twitter.com/utyl2IzGnx

— NDTV (@ndtv) September 12, 2024

“The Adani Group remains steadfastly committed to transparency and compliance with all legal and regulatory requirements. We strongly condemn this effort and urge you to refrain from publishing this story. Should you decide to proceed, we request that you include our statement in full,” the Adani Group said.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

Adani Enterprises’ first retail bond was fully subscribed at its launch on Wednesday, stock exchange data showed, in a rare issue on the market.

While the group has raised money from institutional investors since allegations made by US short-seller Hindenburg Research, which Adani Group has repeatedly denied, the new bond is the first test of retail demand.

Group share prices have recovered since much of the losses, prompting Adani to return to the capital markets. Adani Enterprises did not respond to requests for comment.

Adani Enterprises plans to raise up to 8 billion rupees ($95.32 million) via the bond sale, including a greenshoe option of 4 billion rupees, and had received bids worth 7.17 billion rupees as of 5:00 p.m. local time (1130 GMT), the data showed.

Such retail bond sales are rare and Adani is the first non-financial company to issue them since 2016.

In July, Adani Energy Solutions raised $1 billion through an institutional share sale. Adani Enterprises is also planning a $1 billion share sale, Reuters reported.

“The demand is in line with what we was expected, and has come from retail investors as well as high net-worth individuals which were the primary target audience,” said one of the bankers involved, who declined to be named.

The issue, rated A+ by CareEdge, closes on Sept. 17.

Adani Enterprises as well as bankers and online platforms, through whom retail investors subscribe to these bonds, have marketed the issue through webinars and social media.

Its lead arrangers Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management did not respond to requests for comment.

The bonds offer coupons of between 9.25% and 9.9% based on maturities ranging from 24 months to 60 months. This compares to 10%-11% yields for similarly rated non-banking finance firms.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

Photo used for representation purpose only.
| Photo Credit: Reuters

Adani group plans to invest about ₹1.3 lakh crore across its portfolio companies this fiscal as it doubles down on its $100 billion investment guidance over the next 7-10 years to grow businesses, group CFO said on June 25.

The investment across portfolio companies that range from ports to energy, airports, commodities, cement and media will be 70% met through internal cash generation and the remaining through debt, Group CFO Jugeshinder ‘Robbie’ Singh told reporters here.

The group will look to refinance $3-4 billion of debt maturing in the year and raise an additional $1 billion in project financing, he said, adding the annual $2-2.5 billion of equity infusion by bringing in new investors is also likely to continue.

“This year will be more about asset completion,” he said.

Renewable energy firm Adani Green will complete 6-7 GW project, while the solar wafer manufacturing unit will attain scale. Also, the new airport at Mumbai will be completed, he said.

The projected capital expenditure or capex for 2024-25 (April 2024 to March 2025) fiscal is 40% higher than what the portfolio is estimated to have incurred in FY24.

The group had previously guided a $100 billion capex over the next 7-10 years. Most of this investment is going to go into the group’s fast growing businesses — renewable, green hydrogen and airports and infrastructure, he said.

As much as 70% of the planned capex will go into its green portfolio — primarily renewable power, green hydrogen, green evacuation. Of the remaining 30%, the majority will be spent towards airports and ports businesses.

Adani Group companies posted a record 45 per cent rise in pre-tax profit (Ebitda) to ₹82,917 crore (about $10 billion) in FY24, Singh said.

Emerging from a damning report of a US short seller, which hit the market value of its listed companies, Adani Group in 2023-24 focused on containing debt, reducing founder share pledge and consolidating the business in core competencies. The five-year CAGR (compound annual growth rate) for profit growth was 54%.

A school drop-out, group chairman Gautam Adani started out as a commodities trader and rose to be counted among world’s richest with an empire spanning across ports, power generation, airports, mining, renewables, gas, data centres, media and cement.

Today, Adani Group is the world’s second largest solar power company, it is the largest airport operator with 25 per cent of passenger traffic and 40% of air cargo, the largest ports and logistics company with 30 per cent of national market share, largest integrated energy player, and the country’s second largest cement manufacturer.

With strong emphasis on green energy transition, it will be allocating more than 70 per cent of this USD 100 billion to its green businesses including renewable power, green hydrogen, and green evacuation transmission lines.

The conglomerate is building the world’s largest renewable park at Khavda, Gujarat, spanning over 530 square kilometers – an area five times the size of the city of Paris.

A large portion of total investments is earmarked for expansion and development of its fast-growing airports business and ports business.

With a portfolio boasting eight airports including the upcoming Navi Mumbai airport and 14 domestic ports, Adani wants to further solidify its presence in these sectors.