Adani Enterprises to raise up to Rs 16,600 crore through QIP of its shares

29 May 2024 , 11:20 AM

The board of Adani Enterprises has approved funding up to ₹16,600 Crore through a qualified institutional placement of shares. These shares would have a face value of ₹1 each, and the funds will be raised in one or more tranches, the business informed exchanges on Tuesday.

On Monday, the board of Adani Energy Solutions approved funding up to ₹12,500 Crore through a QIP. The two firms will raise a total of ₹29,100 Crore, or almost $3.5 billion.

Last week, it was reported that the two companies intend to raise roughly ₹24,000 Crore, or $2.88 billion, with support from some first-time overseas investors interested in investing in India’s infrastructure.

Adani Enterprises, the Adani group’s flagship company, plans to raise funds through the capital market for the first time since a follow-up public offering was announced last year. While the country’s largest FPO, worth ₹20,000 Crore, was successful, the corporation returned the funds to shareholders after a dramatic drop in share prices.

Between January and February last year, shares of Adani Enterprises had plunged 65% on allegations from US-based short seller Hindenburg. While the shares did see recovery through the year, they are still trading with an over 26% loss. So far in 2024, the shares are up more than 14% and have yet to surpass the high set in 2023.

Both Adani Enterprises and Adani Energy Solutions had received a board clearance to raise funds through a QIP last year, but did not move ahead with the capital raising.

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