Adani Enterprises Ltd on Saturday said its board approved a plan to raise up to Rs 12,500 crore from the market.
Adani Enterprises said in a statement it plans to raise the funds via selling equity shares through qualified institutional placement or other permissible mode.
The fundraising plan from Gautam Adani-led Adani Group's flagship arm comes months after a report from US-based short-seller Hindenburg Group battered investor confidence and drove share prices of the conglomerate down.
Adani Group has denied all allegations even as market regulator Sebi is probing Hindenburg's allegations as well as Adani Group's related-party dealings following a Supreme Court directive.
"Board has approved raising of funds by way of issuance of such number of equity shares having face value of Rs 1 and / or other eligible securities or any combination thereof, for an aggregate amount not exceeding Rs 12,500 crore by way of qualified institutional placement (“QIP”) or other permissible mode," said the firm in a stock exchange filing.
A QIP is a capital-raising method, which can be adopted by a publicly-traded firm, wherein it can issue equity shares, fully and partially convertible debentures, or any other security convertible into equity shares other than warrants. A QIP, unlike an IPO, is limited to institutions or qualified institutional buyers.
Separately, Adani Transmission Ltd on Saturday said it got board's nod to raise up to Rs 8,500 crore.
Adani Green on Friday postponed its board meeting to May 24.
Bloomberg reported the three are considering raising up to $5 billion, months after a Rs 20,000-crore FPO by the flagship firm fell through in the wake of a scathing short-seller report.
Abu Dhabi-based International Holding Co, which has invested almost $2 billion in Adani companies, does not plan to take part in any potential share sales, IHC's spokesman told Bloomberg.
US short-seller Hindenburg Research, in January, released a damning report alleging accounting fraud and stock price manipulation at the Adani group, triggering a stock market rout that had erased about $145 billion in the conglomerate's market value at its lowest point.
The ports-to-power conglomerate has recast its ambitions as well as prepaid some loans to assuage investors.
Promoters in March sold stakes worth Rs 15,446 crore in four group companies to leading US-based global equity investment boutique GQG Partners.
The group has been trying to win back market confidence with a series of investor roadshows, early debt repayments, and plans to scale back its pace of spending on new projects.