Adani Enterprises mulls $1.8 billion fund raise to fuel expansion plan

23 Nov 2022 , 11:28 AM

Adani Enterprises, the flagship company of billionaire Gautam Adani, plans to issue another public offering or preferential allotment issue, including a QIP, to fund its ambitious expansion plan.

The company informed the stock exchanges that a board meeting is scheduled to be held on Friday, November 25, in Ahmedabad to consider and approve the fundraising proposal.

The company plans to raise funds either by further public offering, preferential allotment (including a qualified institutions placement or any other permissible mode), and/or a combination thereof as deemed appropriate, through the issuance of equity shares or any other eligible securities.

According to reports, the share offering will be worth at least $1.8 billion and will take place in 2023.

Earlier this year, the company was said to be in talks with at least a half-dozen sovereign and global pension funds and energy majors, including the Qatar Investment Authority (QIA), the Abu Dhabi Investment Authority (ADIA), a BNP Paribas arm, and Total Energies SE, to raise up to $2 billion in equity sales.

The proposed fundraising is part of the Adani Group’s larger plan to transform Adani Enterprises into a ‘sustainable’ energy major while decarbonizing transportation and industrial sectors and assisting India in meeting its green goals.

At around 11.32 AM, Adani Enterprises was trading at Rs3,994 per piece, down by 1.03% from its previous closing of Rs4,035.60 on the BSE. The scrip opened at Rs4,048.10 and touched intraday high and low of Rs4,060 and Rs3,973 respectively.

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