Adani Green Board Approves Rs 12,300 Crore Fundraising Via QIP, Shares Rise 1.5 Per Cent

Adani Green Energy fundraising initiative is expected to ease worries surrounding the Adani Group's debt servicing capabilities, thereby fostering confidence among investors

Adani Green Energy board has approved the proposal to raise Rs 12,3000 crore through a qualified institutional placement (QIP) route on Thursday. The fundraising news has lifted shares of Adani Green Energy over 2 per cent higher during intra-day trade. Shares of Adani Green Energy on Thursday closed 1.5 per cent higher at Rs 962.20 on the National Stock Exchange.

Adani Green Energy fundraising initiative is expected to ease worries surrounding the Adani Group's debt servicing capabilities, thereby fostering confidence among investors. The company aims to attract additional institutional investors and increase research analyst coverage for its operations, according to a report by Bloomberg.

The fundraising plans for Adani Green come after two other group companies, namely, Adani Enterprises and Adani Transmission announced plans to raise a cumulative total of Rs 21,000. Of the total, Adani Enterprises will raise Rs 12,500 crore, while Adani Transmission would raise Rs 8,500 crore.

This strategic move comes as part of the Adani Group's efforts to recover from the crisis instigated by a detrimental report issued by the US-based short seller Hindenburg Research in January this year. The Hindenburg report had accused the Adani group of serious allegations such as stock manipulation through shell companies, corporate misgovernance, highly leveraged books, and even dubbed it as the largest con in corporate history.

Another Adani firm, Adani Wilmar on Wednesday clocked a 25 per cent year-on-year (YoY) volume growth during the quarter ending June 30, mainly on account of robust consumer demand in edible oils and foods. The sale of branded products in edible oils and foods has been much stronger compared to overall sales of respective segments, the company said in a regulatory filing.

However, the sales in value terms declined 15 per cent YoY following a sharp decline in the edible oil prices, the company added. Adani Wilmar further said that the food and FMCG segment recorded a revenue growth of 30 per cent during the first quarter of this fiscal compared to last year, crossing Rs 1,000 crore.