Adani eyes $2-2.5bn through equity sale

Billionaire Gautam Adani's conglomerate is looking to raise $2-2.5 billion through an equity share sale in the boldest comeback strategy after the ports-to-energy conglomerate was rocked by allegations of fraud levelled by a US short seller.

Boards of two group companies will meet on May 13 to consider fundraising, according to stock exchange filings. "A meeting of the board of directors of Adani Enterprises Ltd will be held on Saturday, May 13, 2023, at Ahmedabad, inter alia, to consider and approve the proposal of the raising of funds by way of issuance equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods," the firm said in the filing.

Adani Green Energy Ltd - the group's renewable energy company - too sent out a similarly worded filing. Neither of the two companies disclosed how much money they intend to raise. Sources aware of the matter said the group may be looking at raising between $2 billion and $2.5 billion, with investors in Europe and the Middle East evincing strong interest. This comes three months after Adani Enterprises Ltd was forced to abort a Rs 20,000 crore follow-on public offering (FPO) in the wake of the Hindenburg report.

The offer was fully subscribed but the company returned the money to subscribers. The sources said the company stock which was offered in the price range of Rs 3,112 to Rs 3,276 per share in the FPO is now available at Rs 1,984 (at Thursday's closing price).