US-based short-seller Hindenburg Group’s January report battered investor confidence and drove share prices of the group down.
Adani Transmission said its board approved a plan to raise up to Rs 8,500 cr from the stock market while Adani Enterprises said it will raise up to Rs 21,000 cr
Updated May 13, 2023, 7:20 PM IST
Two Adani Group companies, Adani Transmission Ltd and Adani Enterprises Ltd, announced plans on Saturday to raise up to Rs 21,000 crore from the market. These announcements came months after a short-seller report battered investor confidence and drove the conglom share prices down.
Adani Transmission said its board approved a plan to raise up to Rs 8,500 crore from the stock market. Adani Enterprises said in a filing to exchanges that its board had approved plans to raise up to Rs 12,500 crore.
Adani Transmission and Adani Enterprises, flagship arm of Gautam Adani-led Adani Group, said in separate statements they planned to raise the funds via selling equity shares through qualified institutional placements or other permissible mode.
A QIP is a capital-raising method, which can be adopted by a publicly-traded firm, wherein it can issue equity shares, fully and partially convertible debentures, or any other security convertible into equity shares other than warrants. A QIP, unlike an IPO, is limited to institutions or qualified institutional buyers.
US-based short-seller Hindenburg Group’s January report battered investor confidence and drove share prices of the group down.
Adani has denied all allegations even as market regulator Sebi is probing Hindenburg’s allegations as well as Adani group’s related-party dealings following a Supreme Court directive.
Adani Green Energy, which was also expected to announce similar funding plans, on Friday rescheduled its board meeting to May 24.
A planned Rs 20,000-crore share sale by Adani Enterprises fell through in the wake of the scathing short-seller report.
Abu Dhabi-based International Holding Co, which has invested almost $2 billion in Adani companies, does not plan to take part in any potential share sales, IHC’s spokesman told Bloomberg.
Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy. Adani stocks are still off more than $110 billion in value since the report.
The ports-to-power conglomerate has recast its ambitions as well as prepaid some loans to assuage investors.
Promoters in March sold stakes worth Rs 15,446 crore in four group companies to leading US-based global equity investment boutique GQG Partners.
The group has been trying to win back market confidence with a series of investor roadshows, early debt repayments, and plans to scale back its pace of spending on new projects.
Published on: May 13, 2023, 3:19 PM IST