'Factually incorrect': Adani Enterprises rejects report on company looking to raise $5 bn from wealth funds

Adani Enterprises on Monday rejected a news report that said the flagship Adani firm is looking to raise $5 billion from wealth funds. 

"We would like to submit that there is no such development and therefore, the abovementioned news item is factually incorrect. We are unable to comment on media speculation or rumours and it would be inappropriate on our part to do so. The Company regularly evaluates all opportunities across its various businesses with the objective of enhancing shareholders' value," said Adani Enterprises in a stock exchange filing. 

"With this fundraising, in one fell swoop Adani can improve debt ratios, broaden his investor base, improve stock liquidity and trigger wider analyst coverage for a conglomerate that’s surprisingly under-covered despite the outsized stock gains... Adani executives are courting global sovereign and pension funds, including Mubadala Investment Co., Abu Dhabi Investment Authority and the Canada Pension Plan Investment Board," reported Bloomberg last week. 

Last week, Adani Enterprises Ltd, the flagship firm of Asia's richest person, said it will raise funds to the tune of Rs 20,000 crore through the issue of fresh equity shares to fund the massive expansion at his sprawling business empire.

The public offering will help Adani Enterprises Ltd (AEL), which is the business incubator for the group and currently houses businesses from civil aviation to data centres, diversify the shareholder base and build its credibility and acceptance among investors.

Promoters currently hold 72.63 per cent shares of AEL. Of the remaining 27.37 per cent, almost 20 per cent is held by insurance companies and foreign portfolio investors.

Shares of Adani Enterprises have more than doubled in the last one year, giving it a market value of Rs 4.46 lakh crore.