Adani to fund pledged Rs 60,000 crore for charity through stock transfer – Reuters
Express press service
NEW DELHI: Like Bill Gates, Warren Buffett and Azim Premji, Gautam Adani is likely to take the share transfer route to fund his ambitious Rs 60,000 crore donation pledge, a person familiar with the development has said.
Last week, Asia’s richest billionaire Gautam Adani and his family pledged to donate 60,000 crore to charity to mark his 60th birthday. The group, however, has yet to update how it will fund this cause and the timeline in which this massive sum will be spent. A statement from the company had said the amount (committed to charity) would be administered through the Adani Foundation.
“Adani would transfer Rs 60,000 crore of his shares to the foundation. He won’t write a check,” a person familiar with the development said. Most billionaires around the world, including India’s top philanthropist and Wipro founder, Azim Premji, regularly transfer the shares they own to their foundation/trust or foundations of their choice to fund their charitable cause.
These foundations also own a large portion of the shares of the company from which those shares are transferred, benefit from a market rally and are rewarded with handsome dividends. According to a leading investment banker, the promised donation will have no impact on the share price of the group companies for the time being and these commitments are being met over a very long period.
“Adani Group’s market capitalization is one of the highest in India and the promoters own a very large portion of the shares of its seven listed companies. The worrying part is its high debt and exorbitant price-to-earnings ratio of many stocks which, going forward, could impact the high valuation,” he said on condition of anonymity. , said,
“It’s his wealth and his shares, he has every right to do so. The transfer of shares would not affect voting rights, so I don’t think minority shareholders will have any problems with the arrangement. Gautam Adani’s net worth on Tuesday was pegged at around $96 billion, 12 times higher than the promised 60,000 crore rupees ($7.6 billion) at current valuations.