The flagship Gautam Adani Group business, Adani Enterprises Ltd (AEL), will test the waters in the public market for the first time since its failed follow-on offer in February 2023. The business intends to raise Rs 10,000-12,000 crore through qualified institutional placement (QIP) as early as September this year.
Sources close to the development verified Adani Enterprises' objectives. According to reports, big institutions including State Bank of India (SBI), ICICI Bank, and HDFC Bank are expected to participate in the QIP. Some international banks, notably Jefferies, are expected to join in the latest round of financing.
Last year, it had to withdraw its Rs 20,000 crore follow-on offer when the Hindenburg report was revealed on January 24, 2024. The investigation made severe claims against the Adani Group, including price fixing and insider trading. In May of this year, AEL planned to return to the capital market with an equity fundraising plan of Rs 16,600 crore to support its development aspirations.
QIPs provide an easier option to raise funds by selling shares to institutional investors. Adani Enterprises' share sale may result in a 2.75-3.3% dilution of promoters' shares. Currently, promoters own 74.92% of Adani Enterprises. After the business had to suspend its FPO plans in February 2024, US-based GQG Partners stepped in and purchased shares worth Rs 15,500 crore in four Adani Group entities, including Adani Enterprises.
Adani Enterprises focuses in energy and utilities, infrastructure (including airports), minerals, metals, and mining and direct-to-consumer enterprises. AEL has a market capitalization of Rs 3.6 lakh crore. Its shares were selling at Rs 3,186 per, nearly 21% behind their all-time high of Rs 4,019 set in November 2022. As of June 30, 2024, its debt was Rs 56,664 crore, up from Rs 50,124 crore at the end of the March quarter. It improved its net debt/EBIDTA ratio from 5.2 times at the end of FY22 to 2.1 times at the end of the first quarter of FY25.
Adani Energy Solutions Limited (AESL) has collected Rs 8,373 crore through the QIP method. This is AESL's first stock raising in the capital market after its demerger and listing from Adani Enterprises Limited in July 2015.
