New Delhi: Adani Enterprises Ltd, the flagship company of billionaire Gauta Adani's group, on Tuesday said its board has approved raising Rs 16,600 crore (about US$2 billion) through share sale.
The announcement comes a day after the group's power utility Adani Energy Solutions Ltd got similar approval to raise up to Rs 12,500 crore through qualified institutional placement (QIP) or any other permissible mode.
Adani Enterprises said in a stock exchange filing that the fundraise could take place in one or more tranches.
Both companies will require other approvals, including those from shareholders.
While Adani Enterprises Ltd has called a shareholder meeting on June 24 to approve the fund raise, Adani Energy Solutions Ltd's annual general meeting (AGM) is scheduled for the next day.Both the firms got the same approval till 2023, but those approvals were about to expire. June, triggering the need for new approvals.
In May 2023, the board of Adani Enterprises had approved raising funds of Rs 12,500 crore through QIP. That month, Adani Energy Solutions also received board approval to raise Rs 8,500 crore through QIP.
QIP is, basically, a way for listed companies to raise capital without submitting legal paperwork to market regulators.
Raising money from institutions such as banks and private equity funds will increase the companies' shareholder count - one of the major criticisms against the Adani Group - as well as increase their stature globally. This will also reduce the stake of the promoter Adani family.Post-equity capital of companies.
The Adani family holds 72.61 percent stake in Adani Enterprises Limited and Adani Energy Solutions Limited holds 73.22 percent stake.
Both companies did not go ahead with the 2023 board approval to raise funds. Board approval for fundraising helps in quick execution of proposals, whenever the company gets the best financing terms. However, it is not mandatory for them to raise this much amount of money.The Apple-to-Airport conglomerate has increased capital spending as it recovers from the blow of a disastrous report from US short seller Hindenburg Research last year.
At its lowest point the market value of Adani Group shares fell by about US$15 billion, but has since recovered.
Four of the 10 listed Adani companies have reached pre-Hindenburg levels and tycoon Adani's net worth has increased by US$25 billion to more than US$10 billion this year.
He is now ranked 13th in the world, just one rank below Mukesh Ambani, who is worth US$114 billion. The group's claw-back strategy that included reining in debt and expanding at a slow pace led it to raise about Rs 45,000 crore from Qatar.Investment Authority, Abu Dhabi-based IHC, French major TotalEnergies and US-based lead investor GQG Investments.
In a stock exchange filing, business incubator Adani Enterprises Ltd, which operates businesses ranging from airports to data centres, said its board has "approved raising funds by issuing such number of equity shares of the company with face value of Rs 1 each. and/or other eligible securities or a combination thereof, in one or more tranches through QIP or other permissible mode, the aggregate amount not exceeding Rs 16,600 crore or an amount equivalent thereto.
However, it did not give details of the use of the funds. Adani Enterprises had in February last year canceled the follow-on share sale through which it had raised Rs 20,000 crore after raising the group's stake in Hindenburg, alleging accounting fraud, stock manipulation andImproper use of tax havens. Were.The group's shares fell. Adani Group has denied all the allegations.
The announcement comes a day after the group's power utility Adani Energy Solutions Ltd got similar approval to raise up to Rs 12,500 crore through qualified institutional placement (QIP) or any other permissible mode.
Adani Enterprises said in a stock exchange filing that the fundraise could take place in one or more tranches.
Both companies will require other approvals, including those from shareholders.
While Adani Enterprises Ltd has called a shareholder meeting on June 24 to approve the fund raise, Adani Energy Solutions Ltd's annual general meeting (AGM) is scheduled for the next day.Both the firms got the same approval till 2023, but those approvals were about to expire. June, triggering the need for new approvals.
In May 2023, the board of Adani Enterprises had approved raising funds of Rs 12,500 crore through QIP. That month, Adani Energy Solutions also received board approval to raise Rs 8,500 crore through QIP.
QIP is, basically, a way for listed companies to raise capital without submitting legal paperwork to market regulators.
Raising money from institutions such as banks and private equity funds will increase the companies' shareholder count - one of the major criticisms against the Adani Group - as well as increase their stature globally. This will also reduce the stake of the promoter Adani family.Post-equity capital of companies.
The Adani family holds 72.61 percent stake in Adani Enterprises Limited and Adani Energy Solutions Limited holds 73.22 percent stake.
Both companies did not go ahead with the 2023 board approval to raise funds. Board approval for fundraising helps in quick execution of proposals, whenever the company gets the best financing terms. However, it is not mandatory for them to raise this much amount of money.The Apple-to-Airport conglomerate has increased capital spending as it recovers from the blow of a disastrous report from US short seller Hindenburg Research last year.
At its lowest point the market value of Adani Group shares fell by about US$15 billion, but has since recovered.
Four of the 10 listed Adani companies have reached pre-Hindenburg levels and tycoon Adani's net worth has increased by US$25 billion to more than US$10 billion this year.
He is now ranked 13th in the world, just one rank below Mukesh Ambani, who is worth US$114 billion. The group's claw-back strategy that included reining in debt and expanding at a slow pace led it to raise about Rs 45,000 crore from Qatar.Investment Authority, Abu Dhabi-based IHC, French major TotalEnergies and US-based lead investor GQG Investments.
In a stock exchange filing, business incubator Adani Enterprises Ltd, which operates businesses ranging from airports to data centres, said its board has "approved raising funds by issuing such number of equity shares of the company with face value of Rs 1 each. and/or other eligible securities or a combination thereof, in one or more tranches through QIP or other permissible mode, the aggregate amount not exceeding Rs 16,600 crore or an amount equivalent thereto.
However, it did not give details of the use of the funds. Adani Enterprises had in February last year canceled the follow-on share sale through which it had raised Rs 20,000 crore after raising the group's stake in Hindenburg, alleging accounting fraud, stock manipulation andImproper use of tax havens. Were.The group's shares fell. Adani Group has denied all the allegations.
