Gautam Adani to Sell $450 Million Stake of Ambuja Cement to Pay Off Debts

A $450 million stake in Gautam Adani’s cement company, which owns 63 percent of Ambuja Cement, is up for sale. The plan hasn’t been finalized, and he hasn’t revealed who will buy the stake, it was said. A fourth person corroborated the conversations but withheld further information. To lower debt and regain investor trust in his business, Gautam Adani is selling his stakes.

According to three people with firsthand knowledge of the strategy, Adani formally requested on Thursday that international lenders purchase 4 to 5 percent of Ambuja Cement.

Following a study by American short-seller Hindenburg Research that claimed share market manipulations and fraud had erased $145 billion from the market value of the company’s listed firms, Adani decided to reduce its share of Ambuja. The firm has refuted the accusations and stated that paying off its $24 billion in net debt won’t be a problem.

Selling Stake To Pay Off Own Debts

The corporation would sell the first-ever asset if the sale of the Ambuja stake went through as part of its efforts to pay down debt. A spokesman for the Adani Group refused to respond. Adani has brushed off worries about its debt levels, noting it hasn’t ever experienced a default or that its businesses and industries generate enough revenue to easily meet interest costs.

Since the short-seller analysis was made public in late January, the corporation has repaid debts totaling around $2 billion that were secured against the securities of Adani’s publicly traded subsidiaries. The group said it aimed to “pre-fund all share-backed borrowing” by the end of March 2023.

According to two persons with knowledge of the situation, Adani has indeed repaid a $500 million bridge loan that was a component of this deal and was scheduled to mature at the beginning of this month.