NEW DELHI: The flagship Gautam Adani Group firm -- Adani Enterprises Ltd (AEL) – will be testing waters in the equity market for the first time since its aborted follow-on offer in February 2023. The company is planning to raise Rs 10,000-Rs 12,000 crore via qualified institutional placement (QIP) as early as September this year.
Sources close to the development confirmed the plans of Adani Enterprises. As per sources, top banks like State Bank of India (SBI), ICICI Bank and HDFC Bank are likely to participate in the QIP. Some foreign banks including Jefferies are likely to participate in the current round of the fundraising.
Last year, it had to scrap its Rs 20,000 crore follow-on offer after the Hindenburg report was released on 24 January 2024. The report had levelled serious allegations of price rigging and insider trading, among others, on Adani group. AEL in May this year has decided to enter the capital market again with Rs 16,600 crore equity fundraising plan to fund its growth plans.
QIPs are an easier way of raising money through sale of shares to institutional investors. The share sale by Adani Enterprises may lead to 2.75-3.3% dilution of promoters’ shares. Currently, promoters hold 74.92% in Adani Enterprises. After the company had to cancel its FPO plans in February 2024, the US-based GQG Partners had come to its rescue and bought shares worth Rs 15,500 crore in four Adani Group companies including Adani Enterprises.
Adani Enterprises houses energy & utility, infrastructure (including airports), minerals, metals and mining and direct-to-consumer businesses. AEL has a market cap of Rs 3.6 lakh crore. Its shares were trading at Rs 3,186 a piece, still 21% below its all-time high of Rs 4,019 prices achieved in November 2022. It has debt of Rs 56,664 crore as of June 30, 2024, up from Rs 50,124 crore at the end of March quarter. It has been able to improve its net debt/EBIDTA ratio from the high of 5.2 times at the end of FY22 to 2.1 times at the end of first quarter of FY25.
Recently, Adani Energy Solutions (AESL) raised Rs 8,373 crore via QIP route. This marks AESL’s first equity raise in capital market since its demerger and listing from Adani Enterprises Limited in July 2015.