Adani Enterprises board approves Rs 16,600 crore fundraise via QIP | Company

By Street Asset On May 28, 2024 0 0

The proceeds will be used by Adani Enterprises Ltd (AEL) for its various projects, including the expansion of airports

The Adani Group headquarters in Ahmedabad, Gujarat. Photographer: Prashanth Vishwanathan/Bloomberg

Dev Chatterjee Mumbai

The board of Adani Enterprises, the flagship company of the conglomerate, today approved raising Rs 16,600 crore by way of qualified institutional placement (QIP) or any other instruments, the company said in a statement to the stock exchanges.

The proceeds will be used by Adani Enterprises Ltd (AEL) for its various projects, including the expansion of airports.

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The approval by AEL comes a day after another group company, Adani Energy Solutions, a transmission tower firm, cleared plans to raise Rs 12,500 crore by way of a QIP or any other equity instruments. With this, the group will be raising a massive Rs 29,100 crore by selling shares to investors by July.

Shares of AEL closed at Rs 3,244 a share, down 1.33 per cent, while Adani Energy Solutions closed at Rs 1,089 a share, down 1.38 per cent. AEL is valued at Rs 3.69 trillion in the stock markets, with promoters holding a 72.61 per cent stake in the company. Adani Energy Solutions, on the other hand, is valued at Rs 1.21 trillion, with promoter stake at 73.22 per cent. The Adani group shares have made a strong comeback in the last year after crashing at the end of January last year following a report by US-based short seller Hindenburg Research. The group denied all the allegations, prepaid loans, and sold shares to global investors including GQG Capital, Qatar Investment, and IHC of Abu Dhabi to bolster investor confidence.

On May 16, Adani Energy Solutions acquired a 100 per cent stake in Essar Transco after obtaining requisite regulatory and other approvals for an enterprise value of Rs 1,900 crore. Adani Energy Solutions Ltd (AESL) is the country’s largest private transmission company, with a presence across 17 states of India and a cumulative transmission network of 21,182 circuit km and 57,011 MVA transformation capacity. In its electricity distribution business, AESL serves around 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. AESL is also ramping up its smart metering business and is on course to become India’s leading smart metering integrator with an order book of over 22.8 million metres and is planning to increase its capital expenditure.

AEL’s capital expenditure, on the other hand, is centred around the green hydrogen ecosystem, airport management, data centres, roads, and primary industries like copper and petrochemicals – all of which have significant scope for value unlocking. AEL also plans to participate in the next round of airport privatisation as and when the government auctions them for private participation.

Adani Enterprises board approves Rs 16,600 crore fundraise via QIP | Company

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