Billionaire Gautam Adani-led Adani Energy Solutions is likely to launch a share sale this week to raise over $600 million, news agency Reuters has said.
This will be Adani Group's first equity market fundraise after a $2.5 billion-share sale was cancelled in February 2023 following US-based short-seller Hindenburg Research’s report that accused the conglomerate of stock price manipulation and other irregularities, the report cited sources as saying.
The Hindenburg report accused the group of improper use of offshore tax havens and stock manipulation, claims denied by Adani Group. Despite the denial, the group's shares lost more than $100 billion in value before recovering in late 2023.
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Adani Energy Solutions plans to raise the funds through a Qualified Institutional Placement (QIP), a route often taken by listed Indian companies to secure funds from large institutional investors. The sources, who declined to be named due to the private nature of the plans, indicated that at least three foreign investors, which have not previously invested in India, are set to participate in the offering, the Reuters report said.
Also Read: Adani Energy Solutions Q1: Net loss at Rs 824 crore, revenue up 47%
Adani Group did not respond to Reuters' request for comment and Moneycontrol could not independently verify the report.
Bankers advising Adani on the share sale include SBI Capital Markets, Jefferies, and ICICI Securities. None of the banks commented on the matter, the report said.
Last week, Bloomberg reported that the power transmission unit had selected investment banks to arrange a share sale that could raise at least 50 billion rupees ($597 million).
Since the Hindenburg report in January 2023, Adani Group companies have raised more than $670 million through listed rupee bonds and one dollar bond. Adani Energy's share sale is part of a broader fundraising effort of up to 125 billion rupees ($1.50 billion) approved in May. Other group companies have also received board approvals to raise funds from the market.
The Adani Energy stock ended July 29 at Rs 1,050 on the National Stock Exchange, down 0.19 percent from the previous close.
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