Plans to fund Rs 16,600 crore under the Qualified Institutional Placement (QIP) route have been authorized by the board of Adani Enterprises, the firm announced in an exchange filing on Tuesday. 

One method of generating funds that is primarily utilized in India is QIP. It permits listed businesses to offer qualified institutional buyers (QIBs) equity shares, completely and partially convertible debentures, or other assets (other than warrants) convertible to equity shares.

"We would like to notify you that the Board of Directors has, among other things, approved raising funds for a maximum total of Rs 16,600 crore by issuing equity shares of the company, each with a face value of Re 1. This will be accomplished in one or more tranches using QIP or other approved methods," highlighted Adani Enterprises.

The approval of the Annual General Meeting (AGM) on June 24 and other regulatory consents are required before the decision may be made. 

This most recent fundraising attempt comes after Adani Enterprises was approved in May 2023 to raise Rs 12,500 crore under QIP, but the exercise was not carried out. In a silmilar development, Adani Energy Solutions declared on Monday that company will use QIP or other approved channels to fund up to Rs 12,500 crore.

Shares of Adani Enterprises were trading flat at Rs 3,295.20 on the BSE after the fundraising news. Nearly all of the losses from the Hindenburg crisis last year, which resulted in the cancellation of a Rs 20,000 crore follow-on public offer (FPO), have already been recovered by the stock.  The approval of the Annual General Meeting (AGM) on June 24 and other regulatory consents are required before the decision may be made.

This most recent fundraising attempt comes after Adani Enterprises was approved in May 2023 to raise Rs 12,500 crore under QIP, but the exercise was not carried out. In a similar development, Adani Energy Solutions declared on Monday that company will use QIP or other approved channels to fund up to Rs 12,500 crore. 

Shares of Adani Enterprises were trading flat at Rs 3,295.20 on the BSE after the fundraising news. Nearly all of the losses from the Hindenburg crisis last year, which resulted in the cancellation of a Rs 20,000 crore follow-on public offer (FPO), have already been recovered by the stock.