28 May , 2024 By : Debdeep Gupta
Adani Enterprises on May 28 announced that its board has approved fundraising of Rs 16,600 crore via the QIP routes as it pushes for growth after the Hindenburg fallout last year.
"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," the flagship company of Adani Group said in a regulatory filing.
The firm will seek the approval of shareholders at the ensuing annual general meeting scheduled to be held on 24 June, it said.
Shares of Adani Enterprises on May 28 were trading 0.67 percent lower at Rs 3,266.20 apiece on BSE around 12:30 pm IST. The stock has recovered 12 percent on a year-to-date basis.
The fundraise comes a day after Adani Energy Solutions said that its board has approved a fundraise of up to Rs 12,500 crore through Qualified Institutional Placement (QIP) or other modes, in one or more tranches.
Earlier this week, Sources had reported that the two companies are set to collectively approve a fundraising plan of between $3.5-$4 billion.
Adani Enterprises earlier reported a nearly 38 percent fall in profit due to weak performance in its roads segment and higher expenses.
The Adani group has raised almost $6 billion from marquee investors like Rajiv Jain’s GQG Partners LLC, Qatar Investment Authority, and Total Energies since the start of last year and is once again looking to expand its businesses aggressively.
The board approvals for fundraising enable resolutions, ensuring that the companies can move quickly to find suitable financing terms.
Five out of 10 Adani Group stocks are back above pre-Hindenburg levels, Gautam Adani’s net worth has risen $25 billion this year, going past $109 billion, according to data from Bloomberg.
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