Adani Enterprises announced today that its board has approved a significant fundraising initiative, endorsing the raising of Rs 16,600 crore through qualified institutional placement (QIP) routes. This strategic move aims to bolster the company’s growth trajectory following the impact of the Hindenburg report last year.
In a regulatory filing, the flagship company of the Adani Group stated, “We wish to inform you that the Board of Directors… has inter-alia approved raising of funds by way of issuance of such number of equity shares having face value of Re 1 each of the Company and/or other eligible securities or any combination thereof for an aggregate amount not exceeding Rs 16,600 crore or an equivalent amount thereof by way of qualified institutional placement (‘QIP’) or other permissible mode in one or more tranches.”
Adani Enterprises will seek shareholder approval for this fundraising initiative at the upcoming annual general meeting scheduled for June 24.
As of 12:30 pm IST on May 28, shares of Adani Enterprises were trading 0.67 percent lower at Rs 3,266.20 apiece on the BSE. Notably, the stock has recovered 12 percent on a year-to-date basis.
This announcement follows closely on the heels of Adani Energy Solutions’ disclosure of its own fundraising plan, with board approval to raise up to Rs 12,500 crore through QIP or other modes, in one or more tranches.
Adani Enterprises recently reported a nearly 38 percent decline in profit, attributed to weaker performance in its roads segment and increased expenses. Despite this, the Adani Group has successfully raised nearly $6 billion from prominent investors, including Rajiv Jain’s GQG Partners LLC, Qatar Investment Authority, and Total Energies, since the start of last year. The group is now looking to aggressively expand its businesses once again. The board approvals for these fundraises serve as enabling resolutions, allowing the companies to swiftly secure favorable financing terms.
Furthermore, five out of ten Adani Group stocks have rebounded to levels above their pre-Hindenburg standings. Gautam Adani’s net worth has surged by $25 billion this year, surpassing $109 billion, according to Bloomberg data. This latest fundraising initiative underscores Adani Enterprises’ commitment to fortifying its financial position and driving sustained growth amidst a challenging economic landscape.
