Adani Enterprises Limited (AEL), the flagship company of the Adani Group, will be holding a meeting on May 13 in a bid to raise an unspecified amount through the issuance of equity or other eligible securities. In a regulatory filing to the bourses on Wednesday, the company said it will be considering raising funds by way of issuance of equity shares or other eligible securities through a private placement.
Here’s what we know so far:
> In a regulatory filing to the stock exchanges on May 10, the company said: ‘’The board will consider raising funds by way of issuance equity shares or other eligible securities through a private placement, a qualified institutions placement or a preferential issue.''
> Adani Group’s renewable-energy entity Adani Green Energy also announced that it will look to raise funds after approval of the proposal in its board meeting to be held on May 13, Saturday.
> In its filing, the company said that the trading window for dealing in securities of the Adani Group’s flagship entity will remain closed for a couple of days.
> It read: “Further, as per the Company's Code of Conduct for Prohibition of Insider Trading, the Trading Window for dealing in securities of the Company will remain closed with effect from close of business hours of 10th May 2023 till 48 hours after the conclusion of the meeting of the Board i.e. till the end of day, Monday, 16th May 2023.”
> Adani Enterprises and all other listed companies of the Adani Group suffered a massive blow at the stock market after US-based activist-short seller Hindenburg Group accused it of stock manipulation and accountancy fraud. The report was published on January 24.
> The current proposal of fundraising comes months after the group withdrew its Rs 20,000-crore follow-on public offer (FPO) in February after the Hindenburg report was released.
> The Adani Group had floated the FPO at a time when it needed funds for the capex of green hydrogen projects and to repay debt. However, the group had to abort the plan after the Hindenburg allegations, which led to share prices plunging across the group.
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> The fortunes of the group improved a bit after US-based boutique investment firm GQG Partners, founded by Rajiv Jain, picked up a Rs 15,000-crore ($1.87 billion) stake in AEL, Adani Ports, Adani Green Energy and Adani Transmission from an Adani family trust early in March.
> The funding came in lieu of the sale of shares in Adani Enterprises worth Rs 5,460 crore, Adani Ports & SEZ worth Rs 5,282 crore, Adani Green Energy worth Rs 2,806 crore, and electricity distributor Adani Transmission worth Rs 1,898 crore.
> The embattled Adani group has been trying hard 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.
> Last week, Adani Enterprises reported more than doubling of net profit to Rs 722 crore in Q4 FY23 on the back of robust growth in airports and road businesses.
> For the year ended March 2023, Adani Enterprises' total net profit trebled year-on-year to Rs 2,472 crore and revenue surged more than 97 per cent to Rs 1.32 lakh crore. The board approved a dividend of Rs 1.20 a share for the fiscal 2022-23.
> On Thursday, shares of Adani Enterprises rose 4.38 per cent to hit a high of Rs 1,975 on BSE. The stock was still down 49 per cent year-to-date.
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