Adani Enterprises To Raise $2.45 Bn Via New Share Sale
Adani Enterprises, the flagship company of ports-to-energy conglomerate Adani Group, said it will raise Rs 200 billion ($2.45 billion) through India's largest follow-on public offering of new shares.
The proposed fundraise comes as the group led by Gautam Adani, the world's third richest person, aggressively expands into a slew of sectors including cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.
The share offering would increase the company's public float from the current 27.4 per cent. In contrast, public shareholders of rival Reliance Industries, led by billionaire Mukesh Ambani, held a 49 per cent stake.
"Adani needs capital at the holding company level. It is the flagship company. They need money for a lot of the new initiatives they are seeding, acquisitions and for new projects," said a source with direct knowledge of the transaction.
The group has made acquisitions worth $13.8 billion so far this year, as per Dealogic data, its highest ever in a year and more than double the previous year.
The company plans to file a draft prospectus before 31 December and raise the funds before March 31, but will depend on market conditions, the source added.
Follow-on public offerings (FPO) are done by already listed companies to diversify their equity shareholding. The previous largest FPO was a Rs 150 billion sale in 2020 by Yes Bank.
(Reuters)
