In its first fundraise from the capital markets after calling off its Rs 20,000-crore follow-on public offering (FPO), Adani Enterprises (AEL), the flagship company of Adani Group, now intends to raise Rs 16,600 crore.
AEL received board approvals on Tuesday to raise up to `16,600 crore through qualified institutional placement (QIP) or other permissible modes in one or more tranches. The company will seek shareholders’ approvals at its annual general meeting on June 24, it said in a regulatory update.
AEL has presence in power, energy and logistics, with operations in India and 11 countries. For the quarter ended March 31, the firm had posted a 37.6% fall in net profit at Rs 451 crore, impacted by one-time charges incurred for past airport dues and commercial mining losses.
The fundraising comes close on heels of similar plans announced by Adani Energy Solutions (AESL), another Adani Group firm. AESL, which is the country’s largest private transmission company, said on Monday it had received board approvals to raise up to Rs 12,500 crore. The fundraising would be through QIP or permissible methods, it said, but did not divulge details.
Adani Group, which had raised almost $6 billion from marquee investors such as Rajiv Jain’s GQG Partners, Qatar Investment Authority and TotalEnergies since January last year, had plans of aggressively expanding its businesses.
In February 2023, AEL withdrew its Rs 20,000-crore FPO, a day after it was fully subscribed, and decided to return the proceeds to investors. This came after a January 2023 report by Hindenburg Research, which accused Adani Group of significant governance issues. The report shaved half of the group’s market capitalisation. The group had denied all the allegations.
AEL’s share prices, which were up 14% during the year-to-date 2024, ended down 1.33% at Rs 3,244.35 on Tuesday.