Gautam Adani may raise $3.5 billion from a share sale in three group companies

1 Jun 2023 , 11:03 AM

After the ports-to-energy business was slammed by a damning report of a US short seller, the conglomerate is trying to raise roughly USD 3 billion through an equity share offering to institutional investors in the boldest comeback effort. 

The board of Adani Green Energy Ltd is likely to approve raising up to USD 1 billion in the coming weeks, according to news reports, while the boards of the group’s flagship company Adani Enterprises Ltd, and electricity transmission company Adani Transmission Ltd have already approved raising up to Rs 21,000 crore (over USD 2.5 billion) through share sales to qualified institutional investors.

Adani Enterprises Ltd. and Adani Transmission Ltd. have requested shareholder approval following board approvals.

According to the reports, the board of Adani Green Energy Ltd. may convene in the first or second week of June to approve the fundraising.

The business anticipates finishing its whole USD 3.5 billion fundraising effort in the second fiscal quarter (July–September), which will be used to pay for its capital expenditure requirements.

Investors in Europe and the Middle East have reportedly shown a lot of interest.

To show their sustained interest in the conglomerate, GQG Partners, which invested USD 1.87 billion in four Adani group companies in the first week of March, may also participate.

According to the reports, investors have expressed interest in investing more in the company and still trust the Adani development story.

After lengthy roadshows abroad with a variety of financial institutions and other investors, the fundraising was successfully concluded.

This occurs three months after the Hindenburg report caused Adani Enterprises to cancel a Rs 20,000 crore follow-on public offering (FPO).

The corporation gave subscribers their money back even though the deal had been fully subscribed.

Upon publishing a damaging report in January accusing Adani Group of accounting fraud and stock price manipulation, US short-seller Hindenburg Research set off a stock market meltdown that, at its worst, had destroyed roughly USD 145 billion from the conglomerate’s market worth.

Adani Group is preparing a comeback plan and has refuted all of Hindenburg’s accusations. To reassure investors, the group has revised its goals and paid off some loans.

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