Adani group raises ₹6,071 cr debt for Kutch Copper project

Kutch Copper Ltd. (KCL), a subsidiary of Adani Enterprises Ltd. (AEL), will set up a greenfield copper refinery project, which will produce 1 MTPA (million tonnes per annum) refined copper. The project will be set up in two phases, and the company has secured ₹6,071 crore debt for phase 1 of the KCL Project from a consortium of banks led by State Bank of India, says Adani Enterprises in a stock exchange filing. Apart from SBI, other consortium members are Bank of Baroda, Canara Bank, EXIM Bank of India, Indian Bank, Punjab National Bank, and Bank of Maharashtra.

For phase 1, which will have a capacity of 0.5 MTPA, KCL has achieved financial closure through a syndicated club loan for the greenfield copper refinery project at Mundra, Gujarat.

“Aligned with ‘Atmanirbhar Bharat’, KCL aims to create the capacity for production of refined copper, which plays a vital role in strengthening the nation’s shift towards EV and renewables,” says Vinay Prakash, director, Adani Enterprises Ltd.

He says the project has requisite technology tied up and the construction works at the site are progressing well. It will start production during the first half of CY 2024. "It will be one of the largest copper refinery complexes in the world, with benchmark ESG performance standards, leveraging state-of-the-art technology and digitalisation," he adds. With this funding, the company will complete the project within the set timelines, he says.

Reacting to the development, the Adani Enterprises stock opened higher at ₹2,188.95 and is currently trading at ₹2,197, up 1.64% or 35.55, on the National Stock Exchange (NSE). Adani Enterprises has a market capitalisation of ₹2,48,326.44 crore. Despite broader negative market sentiments, the share has risen 5.61% in the past month. In the past six months, the share has given a 26.98% return, while it has risen 57.94% in the year-to-date period.

Kutch Copper is a 100% subsidiary of Adani Enterprises. Incorporated on March 24, 2021, the company works in the area of manufacturing copper cathodes and copper rods and associated products. Adani Enterprises, which is the incubation arm of the Adani portfolio, has its footprints across infrastructure, ports, transmission, airports, power, green energy, gas and edible oil.

As per the company, KCL is committed to all UN sustainable development goals and focuses on affordable and clean energy, industry, innovation and infrastructure and climate action. SBI Capital Markets Ltd. acted as the financial advisor and Desai & Diwanji Advocates acted as the lenders’ legal counsel. Saraf and Partners Law Offices acted as the legal advisor to KCL.

Last week, billionaire Gautam Adani and his family committed a donation of ₹60,000 crore to a range of social causes to mark the business tycoon's 60th birthday on June 24. The fund, to be administered by the Adani Foundation, will be utilised for healthcare, education, and skill development.