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Adani Enterprise To Raise Funds Through QIPs

This caused the Adani Groupu2019s business to suffer from severe losses. Many of its long-term investors dropped out from making investments in the company. The SEBI was also called to probe into the matter. An Adani CBI Investigation was also ongoing.

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Adani Enterprise To Raise Funds Through QIPs

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  1. ADANI ENTERPRISE TO RAISE FUNDS THROUGH QIPS

  2. Adani Enterprises Limited, the flagship company of the Adani Group, has decided to venture into the equity market for the first time since its aborted follow-on loan offer in the early 2023s. The company currently has elaborate plans to raise around INR 10,000 to INR 12,000 crore via Qualified Institutional Placement (QIP) by September this year. As per reliable sources, some of the top banks like ICICI Bank, HDFC Bank, and the State Bank of India are going to participate in the QIP. A lot of foreign banks like Jefferies will also be participating in the round of fundraising. By raising these funds, the Adani Group will be able to recover from the losses it suffered during the Adani CBI Investigation. It will also be able to carry out its project operations smoothly.

  3. Adani’s Re-entry Into The QIP Market: Last year, the Adani Group had to lose INR 20,000 crore follow-on offer after the Hindenburg report was released in January 2023. This report brought about severe allegations against the Adani Group on stock manipulation and account fraud. This caused the Adani Group’s business to suffer from severe losses. Many of its long-term investors dropped out from making investments in the company. The SEBI was also called to probe into the matter. An Adani CBI Investigation was also ongoing.

  4. How Will The QIPs Impact Adani Group’s Business? The shares sale by Adani Enterprises may lead to a 2.75 to 3.3% dilution of the promoter share. Currently, the promoters hold a round of 74.92% shares in Adani Enterprises. After the company cancelled its FPO plans in February, the GQG Partners came to its rescue. The company bought shares worth INR 15,500 crore in 4 of the Adani companies. This included Adani Enterprises as well. Adani Enterprises houses the energy utility, infrastructure, metal, minerals, mining, and direct-to-customer businesses of the Adani Group. The company currently has a market cap of INR 3.6 lakh crores. Its shares were also trading at INR 3,186 a piece.

  5. With the fundraising initiatives becoming successful, the Adani Group will be able to invest in multiple new projects. This will add to its business profitability. The conglomerate will also be able to carry out its business operations smoothly. The company also has a current debt of INR 56,664 crore as of June 30 2024. This is up from INR 50,124 crore reported at the end of the March quarter.

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