Adani Enterprises, the flagship firm of Gautam Adani group, plans to use proceeds from upcoming Rs 25,000 crore rights issue to primarily strengthen balance sheet and fund growth across airports, roads and new-energy businesses.
The board of AEL on November 11 approved a partly paid-up rights issue of equity shares at Rs 1,800 per share, at over 25 percent discount to prevailing market price. The offer will open for existing shareholders on November 17.
During the earnings call last week, Chief Financial Officer Robbie Singh told analysts that the fundraising was part of a broader capital-management plan designed to back the next phase of incubation and expansion.
“This issue will strengthen AEL’s balance sheet for the next phase of incubation while allowing existing shareholders to participate in the growth story of our core incubating infrastructure and energy transition assets,” said Singh.
The CFO added that the proceeds would serve two main objectives of conversion of existing shareholder loans into equity and funding new growth.
“Our main objective is that as a major shareholder, those loans have been provided by the families holding - and families' company - to Adani Enterprises for growth. They don't seek to have that recovered. They are comfortable to participate in the rights issue, and the effective nature of that will be that the loan that the shareholders have provided will become equity,” said Robbie Singh.
“Consequently, the excess rights exercised by non-promoter shareholders will be the growth capital that will be used primarily for the airports business, and some of it for the roads and Adani New Industries business.”
According to Singh, the infusion will materially reduce the gross debt of the company.
“You will see a very significant change in the gross debt number post this, giving us significantly higher capacity to grow and grow faster. It funds the airport requirements over the next 12 months, and also certain other smaller requirements in roads, in line with our capital-management plan,” he said.
The company has lined up a sizeable capital-expenditure pipeline. During the first half of FY26, AEL’s capex stood at about Rs 16,300 crore and is expected to reach Rs 36,000 crore for the full year.
Robbie Singh said roughly Rs 10,500 crore will go into airports, Rs 6,000 crore into roads, Rs 9,000 crore into petrochemicals and materials, Rs 3,500 crore into metals and mining, and Rs 5,500 crore into Adani New Industries.
Within the airport vertical, Adani Airports is preparing for the commercial opening of the Navi Mumbai Airport this quarter, and a new terminal in Guwahati later this fiscal. Arun Bansal, CEO of Adani Airports told analysts that the company would not wait long before beginning the next phase of expansion.
“We will do the commercial operation of Phase 1 already this quarter, and actually Phase 2 we are already starting. We will accelerate the capex already from next financial year, considering the pent-up demand is much higher than 20 million, the capacity we are building,” he added.
Arun Bansal also said the city-side development of Navi Mumbai and Mumbai airports including hotels, offices and other commercial real estate, would begin from next year with a total outlay of around Rs 20,000 crore and revenue generation expected in FY30.
The rights issue marks Adani Enterprises’ biggest equity-raising since it withdrew its fully subscribed Rs 20,000 crore follow-on public offer in early 2023 after a short-seller report roiled the shares of the group's listed businesses. The latest plan signals a renewed confidence in tapping equity markets and deepening investor participation in an expanding infrastructure portfolio.
“Over the next five years, Adani Enterprises is in a deep investment phase,” CFO Robbie Singh said. “This rights issue ensures that our balance sheet and capital structure are ready for that next decade of growth.”
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