Adani Enterprises, Adani Energy Solutions boards approve $3.5 billion fundraising plan
The board of Adani Enterprises , on May 28, approved a fundraising plan of Rs 16,600 crore, while the board of Adani Energy Solutions had approved a plan to raise up to Rs 12,500 crore on May 27.
The boards of the two Adani group companies – the flagship Adani Enterprises Ltd and its energy transmission and distribution business Adani Energy Solutions Ltd – had announced plans to collectively raise as much as Rs 29,100 crore ($3.5 billion) this week, stock exchange filings show.
On May 26, Moneycontrol first reported that the two boards were planning to approve fundraising plans, collectively worth around $3.5-4 billion. The group plans to invest the proceeds in airports and new energy businesses, including green hydrogen, Moneycontrol reported.
In its stock exchange filing, Adani Enterprises said that its board had approved issuance of securities for an aggregate amount not exceeding Rs 16,600 crore by way of qualified institutional placement (QIP) or other permissible mode in one or more tranches, subject to the approval of the shareholders at the company’s annual general meeting on June 24.
Adani group’s plan to raise funds through equity dilution comes at a time when Adani group stocks have shrugged off the impact of the Hindenburg Research report of January 2023 and reached the pre-Hindenburg levels.
On May 24, Moneycontrol reported that six Adani Group stocks, including Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Ports & SEZ, have erased the losses triggered by a critical Hindenburg report and are now trading above their January 2023 levels, when the report was published by the short-seller.
The other four stocks — Adani Total Gas, Adani Energy Solutions, Adani Wilmer and NDTV — still trade below pre-Hindenburg levels, Moneycontrol reported. Adani Total Gas is still down 74 percent from its pre-Hindenburg high, Adani Energy Solutions by 59 percent, Adani Wilmar 35 percent, and NDTV by 11 percent.
The rally in Adani Group’s stocks in the past two sessions has pushed the market value of the group stocks above $200 billion, as per the report.
Year to date, Adani Ports and Special Economic Zone Ltd and Adani Power Ltd have been standout performers, gaining more than 40 percent and 35 percent, respectively.
However, broadcaster New Delhi Television Ltd has been a laggard, losing 5.5 percent. Ambuja Cements and Adani Entertainment have also seen significant gains, rising 25 percent and 20 percent, respectively.
Owing to the resurgence in Adani group stocks, Rajiv Jain’s GQG, which emerged as the white knight for the group following the short seller report, has seen its investment in Adani stocks grow 150% to $10 billion.
