NEW DELHI: After aborting its Rs 20,000 crore follow-on offer (FPO) in February this year, Adani Enterprises is set to test the waters once again as the company will seek the board’s approval on a proposal to raise funds ‘by way of issuance of equity shares or any other eligible securities’.
Sources told this newspaper the company is planning to raise $2.2 billion (18,000 cr), almost the same amount as it had planned via FPO in January-February. In an exchange filing, the company said a meeting of the board of directors of Adani Enterprises will be held on Saturday, May 13, 2023, in Ahmedabad to consider and approve the proposal of raising funds by way of issuance of equity shares or any other eligible securities via permissible modes.
As per the exchange filing, it could raise funds via any route including but not limited to a private placement, a qualified institution's placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws. As per sources, Adani Group reaching out to investors and trying to bring back the lost confidence of investors. It has reiterated a series of measures to address its debt situation. The company has stated there is no material refinancing risk and no near-term liquidity requirement as there is no near-term significant debt maturity outside the credit envelope.
Sources further said the group has consistently diversified its long-term debt portfolio and has cut its exposure to banks by using other sources of capital. Adani Enterprises had to call off its Rs 20,000 crore FPO as the offer barely managed to get fully subscribed amid allegations of price manipulation and insider trading by US-based short-seller Hindenburg Research.
Board meeting to approve fundraising on May 13
In an exchange filing, the company said a meeting of the board of directors of Adani Enterprises will be held on Saturday, May 13, 2023, in Ahmedabad to consider and approve the proposal of raising funds by way of issuance of equity shares or any other eligible securities