The boards of two Adani group companies - flagship Adani Enterprises Ltd and its energy transmission and distribution business Adani Energy Solutions Ltd - will meet this week to approve a fundraising plan to the tune of $3.5-4 billion, collectively, sources told Moneycontrol.
The board of Adani Energy Solutions will meet on Monday (May 27), while the board of Adani Enterprises is meeting on Tuesday (May 28).
“Adani group is looking to approve fundraising plans to raise around $3.5-4 billion through a combination of equity and debt through various routes including a QIP (qualified institutional placement) offering,” said one of the sources.
The group plans to raise funds to invest in its businesses such as airports and new energy including green hydrogen.
An Adani group spokesperson could not be immediately reached for a comment.
The plans to raise funds through a possible equity dilution comes at a time when Adani group stocks have shrugged off the impact of the Hindenburg Research report of January 2023 and reached the pre-Hindenburg levels.
On May 24, Moneycontrol reported that six Adani Group stocks, including Adani Enterprises Ltd, Adani Green Energy Ltd and Adani Ports & SEZ, have erased the losses triggered by a critical Hindenburg report and are now trading above their January 2023 levels, when the report was published by the short-seller.
The other four stocks Adani Total Gas, Adani Energy Solutions, Adani Wilmer and NDTV still trade below pre-Hindenburg levels, Moneycontrol reported. Adani Total Gas is still down 74 percent from its pre-Hindenburg high, Adani Energy Solutions is down 59 percent, Adani Wilmar 35 percent, and NDTV 11 percent down.
The rally in Adani Group's stocks in the past two sessions has pushed the market value of group stocks above $200 billion, as per the Moneycontrol report. Year to date, Adani Ports and Special Economic Zone Ltd and Adani Power Ltd have been standout performers, gaining more than 40 percent and 35 percent, respectively. However, broadcaster New Delhi Television Ltd has been a laggard, losing 5.5 percent. Ambuja Cements and Adani Entertainment have also seen significant gains, rising 25 percent and 20 percent, respectively.
Owing to the resurgence in Adani group stocks, Rajiv Jain’s GQG, which emerged as white knight for the group following the short seller report, has seen its investment in Adani stocks grow 150% to $10 billion
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