Adani Enterprises, Adani Transmission To Raise Rs 21,000 Crore From Share Sale To Qualified Institutional Buyers

Adani Enterprises would raise Rs 12,500 crore, while Adani Transmission aims to raise Rs 8,500 crore, both through the issuance of shares to qualified institutional buyers.

Two of the Adani Group companies will raise Rs 21,000 crore (over $2.5 billion) through qualified institutional placements (QIP). In regulatory filings to stock exchanges, Adani Enterprises informed that it would raise Rs 12,500 crore, while Adani Transmission aims to raise Rs 8,500 crore, both through the issuance of shares to qualified institutional buyers. 

In a stock exchange filing, Adani Enterprises said its board on Saturday approved "raising of funds by way of issuance of...equity shares having face value of Rs 1 each of the company and/or other eligible securities or any combination thereof, for an aggregate amount not exceeding Rs 12,500 crore or an equivalent amount thereof by way of qualified institutional placement (QIP) or other permissible mode in accordance with the applicable laws."

Adani Transmission in a separate filing said its board 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 and/or other eligible securities or any combination thereof, for an aggregate amount not exceeding Rs 8,500 crore or an equivalent amount thereof by way of QIP or other permissible mode in accordance with the applicable laws."

On the other hand, the board meeting of Adani Green Energy Ltd scheduled on Saturday was postponed to May 24. 

This comes three months after Adani Enterprises was forced to abort a Rs 20,000 crore follow-on public offering (FPO) in the wake of the Hindenburg report. The offer was fully subscribed but the company returned the money to subscribers.

In January, the US-based short-seller Hindenburg Research released a damning report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about $145 billion in the conglomerate's market value at its lowest point. Adani Group has repeatedly denied all allegations by Hindenburg. The group has recast its ambitions as well as prepaid some loans to assuage investors.

In March, the Adani Group promoters sold shares in four group companies worth Rs 15,446 crore to US-based global equity investment boutique GQG Partners.

With a number of investor roadshows, early loan repayments, and proposals to slow down the rate of expenditure on new projects, the business has been attempting to regain market confidence. The funds that Adani Group is looking to raise will be the conglomerate's biggest borrowing since the January 24 Hindenburg report. The money raised is intended to be used for funding the group's expansion projects.