Adani Enterprises board approves ₹16,600 crore fundraising plan
Billionaire Gautam Adani-led Adani Enterprises has announced a significant fundraising plan, approved by its board of directors. The company aims to raise ₹16,600 crore through the Qualified Institutional Placement (QIP) route. This decision comes as the firm seeks to bounce back from the Hindenburg crisis. "The Board of Directors... has inter-alia approved raising of funds by way of issuance of such number of equity shares having face value of ₹1 each," stated Adani Enterprises in a regulatory filing.
Fundraising subject to approvals and regulatory consents
The fundraising plan is subject to necessary approvals, including the upcoming Annual General Meeting (AGM) scheduled for June 24. The company also needs other regulatory consents before proceeding with the fundraising. "The funds will be raised by way of issuance of such number of equity shares and/or other eligible securities or any combination thereof for an aggregate amount not exceeding ₹16,600 crore," Adani Enterprises confirmed in its filing.
Adani Enterprises's previous fundraising efforts and stock performance
Previously, Adani Enterprises received board approval to raise ₹12,500 crore through a QIP in May 2023 but did not proceed with the fundraising. Additionally, Adani Energy Solutions announced plans to raise up to ₹12,500 crore via QIP or other approved methods. Following the news, shares of Adani Enterprises were trading flat at ₹3,295.20 on the Bombay Stock Exchange (BSE).
Adani Enterprises's Q4 results and future plans
Adani Enterprises reported a consolidated net profit of ₹451 crore for the fourth quarter of FY24, marking a 38% decline compared to the ₹722.48 crore profit reported during the same quarter of the previous year. The company's parent entity, Adani Group, is also reportedly discussing plans to provide UPI, credit card, and e-commerce services. These services could potentially be offered through Adani One, a platform launched by the company in 2022 offering services like flight and hotel booking.
