Adani Enterprises will raise Rs 20,000 billion through a follow-on public offering
- ByStartupStory | November 25, 2022
Adani Enterprises will conduct a follow-on public offering to garner Rs 20,000 crore (FPO). The company released the information on Friday in a regulatory filing.
“The board of directors of the company (the ‘Board’), at its meeting held today, November 25, 2022, has approved the… raising of funds by way of a further public offering through a fresh issue of equity shares by the company aggregating up to Rs 20,000 crore,” the company said. Each share would have a face value of one rupee. Furthermore, a postal ballot would be used to determine the shareholders’ consent. This follows a three-year increase of 1,800% in the stock price of Adani Enterprises. In almost the same time period, several stocks in the Adani Group have increased by over 2,000%. Adani is now the third-richest person on earth as a result of this.
However, the company has regularly come under fire for having a small investor base and a high debt-to-equity ratio. The fundraising, according to a Bloomberg article, would aid the group’s efforts to reduce leverage and support the dollar bonds of the corporations. Additionally, it is anticipated to improve the group’s debt-to-equity ratios, stock liquidity, and investor base.
Millionaire Mukesh Ambani, a business partner of Adani, raised more than $27 billion in 2020 by selling Reliance Industries’ interests to Meta and Alphabet. One of India’s greatest commercial conglomerates, the Adani Group, is led by its flagship company, Adani Enterprises. The management of airports, technological parks, roadways, data centers, and water infrastructure are the focus of the company’s business investments. In Q2 FY23, the company’s consolidated net profit increased 117% to Rs 460.94 crore from Rs 212.41 crore, which was reported in Q2 FY22. In Q2 FY23, net sales increased 188.8% to Rs 38,175.23 crore from Rs 13,218.02 crore in the same quarter the previous year. On the BSE, Adani Enterprises shares were down 0.69% at Rs 3,895.
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