Adani Enterprises to mull fundraising today. What you need to know

Billionaire Gautam Adani-led conglomerate Adani Group’s flagship firm Adani Enterprises’ board of directors will meet today i.e., on Friday, November 25, 2022 to consider and approve the proposal of raising funds.

“A meeting of the board of directors of Adani Enterprises Limited will be held on Friday, 25th November at Ahmedabad, inter alia, to consider and approve the proposal of raising of funds by way of further public offering, preferential allotment (including a qualified institutions placement or through any other permissible mode) and/or combination thereof as may be considered appropriate, by way of issue of equity shares or any other eligible securities, subject to all such regulatory / statutory approvals as may be required including the approval of shareholders of the company,» Adani Enterprises informed in an exchange filing earlier this week.

Adani Enterprises was added to the benchmark NSE Nifty 50 Index at the end of September. It acts as an incubator for new businesses launched by the Adani Group. The Adani Group stock has more than doubled this year, giving multibagger return of more than 129% in 2022 (YTD) so far.

Meanwhile, Adani Enterprises reported a quarterly profit for September ended quarter (Q2 FY23) that more than doubled, helped by strong performance at its integrated resources management and airports divisions.

A Bloomberg report suggested that Gautam Adani is courting sovereign wealth funds to raise roughly $5 billion in equity across his sprawling business empire and reduce leverage. Flagship firm Adani Enterprises Ltd. is considering issuing about $1.8 billion to $2.4 billion in new shares as soon as next year, Bloomberg News reported. The $5 billion to $10 billion target may include the funds raised in the potential Adani Enterprises share issue.

The equity fundraising plans are part of what the Adani group calls its systematic capital management program, which has been in place since 2019 and under which the Qatar Investment Authority and Abu Dhabi-based International Holding Co. have previously invested in the Indian group. The fundraising will start with Adani Enterprises and is separate from the group’s plans to raise debt, as per the report.

(With inputs from Bloomberg)

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