Adani Enterprises, owned by Gautam Adani, will use QIP to finance Rs 16,600 crore in order to rapidly grow its firm

On May 28, 2024, the Indian billionaire Gautam Adani-owned Adani Enterprises authorized a proposal to fund up to Rs 16,600 crore, or almost $2 billion. 

The business said in an exchange filing that the financing would be carried out by issuing equity shares or other securities that meet the requirements via a Qualified Institutional Placement (QIP) or other approved channels.

The plan has to be approved by all relevant parties, including shareholders, at the next Annual General Meeting (AGM), which is set for June 24, 2024.

Additionally, Adani Energy Solutions intends to raise money.

Adani Energy Solutions Ltd. was granted comparable clearance in conjunction with the announcement; the company intends to raise up to Rs 12,500 crore. The two businesses want to raise a combined Rs 29,100 crore, or roughly $3.5 billion.

It is anticipated that the money would be used for initiatives like building airports and green hydrogen and other new energy projects. 

The Adani Group intends to use these fundraising rounds to aggressively expand its influence in a number of industries, including infrastructure and energy.

Details of the proposal for funding

The fundraising campaign for Adani Enterprises will be carried out in one or more tranches and will include the issuing of instruments, including equity shares having a face value of one rupee each.

The business said that the specifics, including the kind of securities and the price, would be decided in accordance with the relevant legislation and market circumstances.

The prior approvals from 2023 that are almost about to expire will be replaced by this new approval. To go forward with these financing initiatives, Adani Enterprises and Adani Energy Solutions will each ask for shareholder approval at their separate AGMs.