Adani Transmission on Saturday said that the Board has approved the proposal to raise Rs 8,500 crore ($1 billion) through a Qualified Institutional Placement (QIP). The Board of the company has approved the raising of funds by way of issuance of such number of equity shares having face value of Rs 10 each of the Company for an aggregate amount not exceeding Rs 8,500 crore by way of Qualified Institutional Placement, the electric power distribution company under Adani Enterprises said in a regulatory filing. It added that the Board will seek approval of the shareholders for the aforesaid issuance and ancillary actions by way of postal ballot process.
According to a Bloomberg report on Thursday which cited people familiar with the matter, three Adani Group companies were considering a fundraising that may draw as much as $5 billion (Rs 40,000 crore). Adani Enterprises as well as Adani Green Energy and Adani Transmission may raise between $3 billion and $5 billion for a war chest to bolster the businesses, it said.
Earlier in February, Adani Enterprises had decided to not proceed with its Rs 20,000 crore follow-on-public offer to “protect the interest of its subscribers”, in the wake of the report by Hindenburg Research alleging stock manipulation and fraud by the conglomerate. The offer was fully subscribed but the company returned the money to subscribers.
Hindenburg had released its report on the conglomerate in January, which had erased about $145 billion in Adani Group’s market value. Adani Group has denied all allegations and the Gautam Adani-led firm is plotting a comeback strategy.
Meanwhile, Index provider Morgan Stanley Capital International (MSCI) on Thursday said that it has dropped two of Adani group companies – Adani Transmission and Adani Total Gas – from its India Standard Index. These changes will come into effect 31 May, 2023 onwards. On May 05, 2023, MSCI had announced that the certain Foreign Inclusion Factor (FIF) changes for Adani Total Gas and Adani Transmission will be implemented in the May 2023 Index Review. The rejig comes as a setback for the Adani group companies, who are trying to demonstrate strength after the Hindenburg report.