Gautam Adani's Adani Enterprises to raise Rs 16,600 crore via QIP to aggressively expand business

Indian billionaire Gautam Adani-led Adani Enterprises, on May 28, 2024, approved a plan to raise up to Rs 16,600 crore (approximately $2 billion). 

The company, in an exchange filing, said the fundraising will be conducted through the issuance of equity shares or other eligible securities via a Qualified Institutional Placement (QIP) or other permissible modes.

The proposal is subject to necessary approvals, including from shareholders, at the upcoming Annual General Meeting (AGM) scheduled for June 24, 2024.

Adani Energy Solutions also plans to raise funding

The announcement comes alongside a similar approval from Adani Energy Solutions Ltd, which plans to raise up to Rs 12,500 crore. Collectively, the two companies aim to raise Rs 29,100 crore (about $3.5 billion).

The funds are expected to be invested in projects such as airports and new energy ventures, including green hydrogen. 

With these funding rounds, the Adani Group will focus on aggressively expanding its influence across various sectors, from energy to infrastructure.

Specifics of the fundraising plan

Adani Enterprises' fundraising will be conducted in one or more tranches and will include the issuance of equity shares with a face value of Rs 1 each, among other securities.

The exact details, such as the type of securities and the pricing, will be determined according to applicable laws and market conditions, the company noted.

This new approval will replace the previous approvals granted in 2023, which are nearing expiry. Both Adani Enterprises and Adani Energy Solutions will seek shareholder approval in their respective AGMs to proceed with these fundraising plans.