Adani to raise Rs 21,000 crore from stake sale in two group companies – Times of India

New Delhi: Billionaire Gautam AdaniThe US conglomerate will raise Rs 21,000 crore (over $2.5 billion) through share sale in two group companies, the most bold comeback strategy after allegations of fraud by an American short-seller of the Ports-to-Energy group. Is.
Adani Enterprises Ltd., the flagship firm of the group, while the power transmission company plans to raise Rs 12,500 crore Adani Transmission Another Rs 8,500 crore, the companies said in a stock exchange filing.
The board of renewable energy arm, Adani Green Energy Ltd, was also scheduled to meet on Saturday to discuss funding, but the meeting was postponed till May 24.
The fundraising will be by way of issue of shares to qualified institutional buyers. Sources with knowledge of the matter said that there has been a lot of interest from investors in Europe and the Middle East.
In a stock exchange filing, Adani Enterprises said its board on Saturday has approved raising funds “by issue of equity shares of face value of Re 1 each of the company and/or other eligible securities or any combination thereof.” through Qualified Institutional Placement (QIP) or other permissible mode as per applicable laws for an aggregate amount not exceeding Rs.12,500 crore or an amount equivalent thereto.
Adani Transmission said in a separate filing that its board has approved the raising of funds by issue of up to an aggregate amount of equity shares of face value of Rs 10 each for the company and/or other eligible securities or any combination thereof. Not exceeding Rs.8,500 crore or an amount equal to that through QIP or other permissible mode as per applicable laws.
This comes three months after Adani Enterprises was forced to cancel its Rs 20,000-crore follow-on public offer (FPO) in the wake of the Hindenburg report.
The offer was fully subscribed but the company returned the money to the subscribers. Sources said the company’s scrip, which was offered in the FPO at a price range of Rs 3,112 to Rs 3,276, is now available at Rs 1,964 (at Friday’s closing price).
US short-seller Hindenburg Research Issued a damning report in January alleging accounting fraud and stock price manipulation Adani GroupTriggering a stock market run that at its lowest point had erased about US$145 billion in the group’s market value.
The Adani group has denied all of Hindenburg’s allegations and is planning a comeback strategy. The group has restructured its ambitions as well as repaid some loans to reassure investors.
In March, the promoters sold stake worth Rs 15,446 crore in four group companies to leading US global equity investment boutique GQG Partners.
The group has been trying to win back the market’s confidence with a series of investor roadshows, early loan repayments, and plans to ease its pace of spending on new projects.
The money the Adani group is looking to raise will be the group’s biggest borrowing since the January 24 Hindenburg Report. The money raised is to be used to finance the expansion projects of the group.