The conglomerate of billionaire Gautam Adani announced on Friday that it would raise Rs 20,000 crore in stock to finance the enormous growth of his extensive corporate empire, which now includes cement, electricity, and ports. Adani Enterprises Ltd., the flagship company of Asia’s richest man, announced in a stock exchange filing that it will raise money by issuing new equity shares.
Adani Enterprises Ltd. (AEL), the group’s business incubator and present home to companies ranging from data centres to civil aviation, will benefit from the public offering by diversifying its shareholder base and gaining investor trust and acceptance.
Presently, promoters own 72.63 percent of the shares of AEL. Nearly 20% of the remaining 27.37 percent is held by overseas portfolio investors and insurance companies. AEL’s market value has increased by more than twofold in the previous year, to Rs 4.46 lakh billion. The benchmark S&P BSE Sensex index has increased merely 5.4% over that time.
In the stock exchange filing, AEL said its board of directors met on Friday and approved the “raising of funds by way of a further public offering through a fresh issue of equity shares by the company aggregating up to Rs 20,000 crore.”
Through a postal poll, the corporation will ask its shareholders to approve the offering. The Adani group earlier said that it was developing strategies to raise the free float. In 1988, Adani founded AEL with the goal of trading commodities. Since then, he has utilised it as an incubator for other ventures before spinning them off into publicly traded companies.
Adani Group has a large presence in a variety of industries, including ports, airports, roads, power, renewable energy, electricity transmission, gas distribution, real estate, FMCG, cement, and financial services. The group just ventured into the media industry.
Businesses engaged in ports, power, transmission, green energy, gas, and edible oil are listed separately. With dealmaking, the organisation has recently forayed into a wide range of industries. It recently paid USD 10.5 billion to acquire the Indian cement operations of Holcim Ltd.; this was India’s second-largest deal of the year.
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