Shares of Adani Enterprises climbed 4 per cent in Thursday's trade after the Adani group flagship said it would consider consider a fundraising proposal on Saturday. The Adani group firm informed stock exchanges about the board meeting post market hours of Wednesday.
Following the development, 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.
To recall, the Adani group firm was among four companies that raised $1.9 billion by selling shares to US investment firm GQG Partners in early March. GQG Partners had via block deals bought 38,701,168 Adani Enterprises shares at Rs 1,410.86 apiece for Rs 5,460 crore.
Before that, Adani Enterprises withdrew its Rs 20,000-crore follow-on public (FPO) offer in the wake of hue market volatility.
The Adani board will meet in Ahmedabad. 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, the company said in a statement.
"The board of directors of Adani Enterprises Ltd will be held on Saturday, 13th May 2023 at Ahmedabad to consider and approve the proposal of raising of funds by way of issuance equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws," said Adani Enterprises in a stock exchange filing.
Hindenburg Research raised concerns around Adani Group's governance practices in a January report, which led to about $140-billion rout in 10 of group firms. Hindenburg Research had raised concerns over high debt and alleged improper use of offshore tax havens and stock manipulation. Adani denied the allegations.
Market regulator Sebi is probing Hindenburg's allegations as well as Adani Group's related-party dealings following a Supreme Court directive. Last week, Adani Enterprises said it re-appointed Adani Group chairman Gautam Adani as an executive chairman for a term of five years.
The company reported more than doubling of net profit in the March quarter on the back of healthy growth in airports and road businesses. Net profit in January-March at Rs 722.48 crore, or Rs 6.34 per share, was 137 per cent higher than Rs 304.32 crore, or Rs 2.77 a share, in the same period last year, according to a stock exchange filing by the company.