Advertisement

Adani Enterprises will raise Rs 20,000 crore through a follow-on public offer (FPO). The company made the announcement in a regulatory filing on Friday.

“The board of directors of the company (the ‘Board’), at its meeting held today, 25th November 2022, has approved…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.

The face value of each share would be Rs 1. Further, the approval of the shareholders would be taken via postal ballot.

This comes after a 1,800 per cent rise in the stock price of Adani Enterprises in the last three years. Some stocks in the Adani Group have jumped over 2,000 per cent in the same period. This has made Adani the third-richest person on the planet.

However, the group has been frequently criticised for high debt ratios and a limited investor base.

According to a report by Bloomberg, the fundraiser would help the group deleverage and provide support to the companies’ dollar bonds. It is further expected to boost the group’s debt ratios, stock liquidity and investor base.

In 2020, Adani’s fellow billionaire Mukesh Ambani raised more than $27 billion by selling his stakes in Reliance Industries to Meta and Alphabet.

Adani Enterprises is the flagship company of Adani Group, one of India’s largest business conglomerates. The company’s business investments revolve around airport management, technology parks, roads, data centre and water infrastructure.

The company’s consolidated net profit zoomed 117% to Rs 460.94 crore in Q2 FY23 as against Rs 212.41 crore posted in Q2 FY22. Net sales surged 188.8% to Rs 38,175.23 crore in Q2 FY23 from Rs 13,218.02 crore recorded in the corresponding quarter previous year.

Shares of Adani Enterprises were down 0.69% to Rs 3,895 on the BSE.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here