Adani Group's Flagship Company To Raise Rs 16,600 Cr, Gets Board Approval

Adani Enterprises (AEL), the flagship company of the Gautam Adani group, has received board approval to raise up to Rs 16,600 crore ( USD 2 billion). The decision, announced on Tuesday, comes just a day after another group entity, Adani Energy Solutions (AESL), secured board approval to raise Rs 12,500 crore.

The fundraising initiative by AEL is set to occur in one or more tranches, as disclosed in a stock exchange filing. This strategic move is part of the Adani Group's efforts to overcome the challenges that emerged following the financial irregularities allegations by US short-seller Hindenburg in January of the previous year.

Adani Enterprises plans to seek additional approvals, including from shareholders, with a meeting scheduled for 24 June. Adani Energy Solutions will seek similar approvals at its Annual General Meeting on 25 June. Both firms had previously secured similar approvals in 2023, which are due to expire in June, necessitating the current renewal.

In May 2023, the board of Adani Enterprises approved a Rs 12,500 crore fundraising via Qualified Institutional Placements (QIPs). That same month, Adani Energy Solutions obtained board approval to raise Rs 8,500 crore through QIPs.

Following its fourth-quarter results, AEL’s top management announced a capital expenditure plan of Rs 80,000 crore for the current fiscal year, focusing significantly on new energy projects under Adani New Industries Ltd and the airports business.

Shares of AEL closed 1.33 per cent lower at Rs 3,244.35 on the BSE on Tuesday. The company plans to raise funds through QIP or other permissible modes, potentially issuing equity shares with a face value of Rs 1 each or other eligible securities.