Adani Green Energy shares have attracted attention following comments by Adani Group’s Chief Financial Officer, Jugeshinder Singh, regarding the potential revival of the group’s previously scrapped dollar bond offering. Singh indicated that the group may consider issuing the bond between April and June 2025, depending on the clarity from ongoing investigations into allegations made by U.S. authorities.
The group had initially withdrawn its $600 million dollar bond offering due to allegations from U.S. authorities, including charges of defrauding U.S. investors. This led to a significant market value loss for the Adani Group, amounting to $34 billion. However, Singh expressed optimism that the bond offering could be revived once the investigation provides clearer direction. He stated, “Once we find clarity, we’ll revive the dollar bond sale,” in his first media appearance since the U.S. indictment became public.
Adani Green Energy shares performance has been volatile, with shares rising by 20.64% last week. However, the stock has faced a decline of 17.88% over the past month. On Monday, the stock surged by 7.96%, reaching a high of Rs 1,430 on the Bombay Stock Exchange (BSE), as investors reacted to Singh’s statements.
In the meantime, Adani Green Energy is planning to raise up to $500 million by February 2025 through banks or a private placement in the offshore market as reported by Business Today in one of the articles dated December 02, 2024. Singh reassured investors that despite the ongoing challenges, the Adani Group had no intentions of delaying any planned acquisitions, and there would be no rollback in its capital expenditure plans.
Singh emphasized the group’s financial resilience, stating that even if banking and U.S. markets were to close, the Adani Group would continue its operations. “We will make investments from the money we earn ourselves,” he remarked. The group currently holds $6.3 billion in cash and expects to generate an additional $7 billion over the next year, which will offset $3 billion in repayments. The group projects a $10 billion surplus.
Despite the ongoing investigations, Singh conveyed confidence in the group’s financial strength, stating that their banking partners and investors understand that they do not rely on external funds. This financial independence has kept the group well-positioned, and Singh assured that the group’s operations would continue unaffected by the current market challenges.
Adani Green Energy recently issued a clarification regarding the U.S. Department of Justice (DoJ) indictment, stating that only officials from Azure and CDPQ, two of its partners, were charged with bribery. The company clarified that no bribery charges were made against any Adani Group executives. The indictment did not specify any fines or penalties, further indicating that the Adani Group’s exposure in the case might be limited.
On December 02, 2024, Adani Green Energy shares opened at ₹1,364.00 and touched the day high of ₹1,445.00 at 10:50 AM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
