Adani Enterprises Considers Raising Up to Rs 12,000 Crore Through Share Sale

Billionaire Gautam Adani’s flagship company, Adani Enterprises Ltd., is reportedly considering raising between Rs 10,000 crore ($1.2 billion) and Rs 12,000 crore through a share sale, according to sources familiar with the matter. This potential fundraising effort would follow a recent successful capital raise by its power transmission unit.

Adani Enterprises may opt for a qualified institutional placement (QIP) to raise the funds, with the company currently working with banks to facilitate the sale. The share offering could take place as early as September, according to insiders who requested anonymity due to the private nature of the discussions.

As part of its strategy to broaden its shareholder base and attract more research coverage, the Adani Group is targeting institutional investors, including those from the United States. While the specifics of the fundraising, including the amount and timing, are still under deliberation and could change, the interest from institutional investors is evident. A representative for Adani Group was not immediately available for comment.

In May, Adani Enterprises had already approved a plan to raise up to Rs 16,600 crore through various means, including share sales to institutions in multiple tranches. The anticipated transaction would come on the heels of Adani Energy Solutions Ltd.’s Rs 8,370 crore share sale to institutional investors last week. That offering attracted demand approximately six times the base deal size, with significant interest from US utility-focused investors and sovereign wealth funds.

A successful fundraising by Adani Enterprises could help restore global investor confidence in the group after it faced allegations of widespread fraud and corporate malfeasance by US short-seller Hindenburg Research in early 2023, which led to a sharp decline in its market value. Adani has consistently denied these accusations.