Shares of Adani Green Energy and Adani Ports SEZ will be in focus on Monday's trade as a media report suggested that the Gautam Adani-led Adani group is looking to refinance $1.15 billion of overseas bonds at two group firms, Adani Green Energy and Adani Ports SEZ via private placements.
The report, which cited multiple banking sources as aware of discussions with potential investors, came at a time when another report, this time by PTI, suggested the group has suspended work on a Rs 34,900 crore petrochemical project in Gujarat's Mundra.
According to ET, the group is engaged in exploratory talks with potential overseas investors, such as global insurance firms, to privately place longer-tenor bonds with up to 30 year maturities. The bonds will carry fixed coupon rates. The report said that the group has shortlisted two bond tranches, amounting to $500 million and $650 million, respectively, of Adani Green Energy and Adani Ports SEZ. The group believes that there will be a good appetite for its bonds in the private market, since most of the debt is backed by strong cash flows, as per the ET report.
Another report by PTI on Sunday suggested that the Gautam Adani-led group has decided not to pursue the Gujarat project, for the time being, and that it has sent emails to vendors and suppliers to suspend all activities on an immediate basis. In 2021, the Adani Group's flagship firm Adani Enterprises had incorporated Mundra Petrochem, a wholly-owned subsidiary of Mundra Petrochem, to set up a greenfield coal-to- PVC plant at Adani Ports and Special Economic Zone APSEZ land in Kutch, Gujarat.
As per the PTI, the group was reviewing various projects being implemented in different business verticals. Some of the projects are being re-evaluated for its continuation and revision in timelines based on future cashflow and finance, according to PTI.
Adani's unit was to have a poly-vinyl chloride PVC production capacity of 2,000 KTPA kilo tonne per annum requiring 3.1 million tons per annum MTPA of coal that was to be imported from Australia, Russia and other countries, the news agency said.