NEW DELHI: Two Adani Group companies are seeking to raise Rs 21,000 crore through the qualified institutional placement (QIP) route.While Adani Enterprises said it will raise Rs 12,500 crore, Adani Transmission has plans to raise Rs 8,500 crore.
This fundraising exercise comes after the stinging report of US-based Hindenburg Research had forced the Group’s flagship Adani Enterprises to scrap its Rs 20,000 follow-on public offer. The fresh fundraising exercise also comes as the port-to-power conglomerate is in the middle of an on-going investigation by the Supreme Court-appointed panel and market regulator Sebi.
The board of directors of the two companies in two separate meetings held on Saturday approved the fundraising by way of issuance of shares and/or other eligible securities by way of QIP or other permissible mode. The two companies would now seek approval of the shareholders for the aforesaid issuance and ancillary actions by way of a postal ballot process. This will be an easy process given promoter shareholding in Adani companies is very high.
Adani Green Energy, which was also scheduled to announce fundraising plans on Saturday, after a board meeting, has rescheduled it to May 24. The fundraising is seen as part of the Group’s effort to ease concerns related to its ability to service its humongous debt and continue with its aggressive expansion plans.
The Group, whose net debt stood at Rs 1.96 lakh crore, as of December-end 2022 is reported to have tamp down its capital expenditure (capex) roadmap. Last week, Adani Enterprise revised its capex guidance downwards for FY24 to $3.8 billion from earlier projection of $5.3 billion.
If successful, this will be the second big fundraising by the billionaire Gautam Adani Group after allegations of stock price manipulation and other fraudulent activities by Hindenburg had wiped out half of the Group’s market value.
Earlier in March, US-based boutique investment firm GQG Partners had bought stakes worth Rs 15,446 crore in three Adani Group Companies through block deals. This investment had brought much-needed relief as it halted the free fall of Group shares after they crashed up to 80%.