The Adani group, whose founder and other senior officials are being investigated by US authorities over bribery allegations, is likely to take recourse to promoter stake sales in portfolio companies or a domestic issuance, to raise funds to meet requirements in the short term, sources said.

Gautam Adani holds substantial stakes in his companies and selling a small portion of that would likely help the group to tide over immediate financing needs, the sources said. The group is also likely to speed up the divestment of Adani Wilmar, which has been on the cards for some time. It is part of the group’s strategy to exit non-core businesses, its core being infrastructure. In 2023, it had sold stake in Adani Capital.

Adani group did not respond to a list of questions sent on the matter.

Last week, the US Department of Justice and the Securities and Exchange Commission indicted Gautam Adani, his nephew Sagar Adani and others for allegedly bribing Indian government officials to get solar project contracts that would benefit Adani Green Energy. The papers filed in a US Court said that while engaged in bribery, bonds had been issued to US investors and misleading statements made.

The indictment forced Adani Green to scrap a $600-million US dollar bond sale, part of a larger fund raising programme. It was primarily meant to repay foreign currency loans. The company has around $2 billion of debt in short-term project loans.

If the company is unable to raise funds overseas, it will have to look at the other options sources said. Global rating agency S&P Global Ratings had flagged concerns last week over weaker funding access following the US actions, that could include lowering of funding limits, non-renewal of facilities or higher spreads.

The group is not in the same overleveraged situation that it was last year when short seller Hindenburg Research’s allegations came out. At that time, the group took care of its short-term debt obligations by way of promoter stake sales in group companies, specifically to Rajiv Jain’s GQG Partners, which has consistently backed the group.

GQG’s stand

Meanwhile, GQG Partners, which had said that it was monitoring the situation following the indictment, said that it did not expect the US actions to have a material impact on the businesses. As of November 19, its exposure to the Adani group was valued at $9.7 billion, representing 6.1 per cent of its total assets.

In a note to its clients, the investment firm said the allegations related only to Adani Green and not the other group companies, the indictment was of the employees and not the company. It also said it felt that the Indian government would maintain its support for Gautam Adani “as he is the most important infrastructure developer in the country by order of magnitude.”

It said, “As the facts stand today, we believe these companies will keep operating even if individuals receive fines or sanctions, and “there are currently no signs of domestic banks, especially India’s government owned banks, of shutting off credit to the Adani group.”

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