Adani Group Plans $2-2.5 Billion Equity Share Offering to Raise Funds

Adani Group Plans $2-2.5 Billion Equity Share After Hindenburg Massacre

Following allegations of fraud made by a US short seller that rocked the ports-to-energy conglomerate, billionaire Gautam Adani‘s conglomerate is attempting to raise USD 2-2.5 billion through an equity share offering in the most audacious comeback scheme. According to filings with the stock exchange, two group firms’ boards will meet on May 13 to discuss fundraising.

All About Adani Group Fund Raising!

“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 raising funds by way of issuing 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 company said in the filing.

The group’s renewable energy company, Adani Green Energy Ltd, also filed a document with similar wording. Each of the two businesses kept their intended funding raising a secret. The business may be trying to raise between USD 2 billion and USD 2.5 billion, according to sources with knowledge of the situation, with investors in Europe and the Middle East displaying great interest. This occurs three months after the Hindenburg report caused Adani Enterprises Ltd. to cancel a ₹20,000 crores follow-on public offering (FPO).

The offer was fully subscribed, however, the money was returned to subscribers. According to sources, the firm stock, which was offered in the FPO at a price range of ₹3,112 to ₹3,276 per share, is currently accessible at ₹1,984. Hindenburg Research, a US short-seller, produced a damaging study in January alleging accounting fraud and stock price manipulation at the Adani group, sparking a stock market meltdown that erased over USD 145 billion from the conglomerate’s market worth at its lowest point.

The Adani Group has disputed all of Hindenburg’s charges and is planning a response effort. To appease investors, the group has recast its aspirations and prepaid some loans. In March, the promoters sold shares in four group companies worth ₹15,446 crores to GQG Partners, a major US-based global equity investment boutique.

The company has been attempting to regain market trust through a series of investor roadshows, early debt repayments, and commitments to slow the pace of new project spending. It will be the conglomerate’s largest loan since the Hindenburg report on January 24 to the amount that Adani Group is looking to raise. The funds received will be utilized to fund the group’s expansion efforts.