On May 28, the board of Adani Enterprises approved a fundraising plan of Rs 16,600 crore, while on May 27, the board of Adani Energy Solutions greenlit a plan to raise up to Rs 12,500 crore.
Collectively, the boards of the flagship Adani Enterprises Ltd and its energy transmission and distribution arm, Adani Energy Solutions Ltd, announced plans to raise approximately Rs 29,100 crore ($3.5 billion) this week, according to stock exchange filings.
Earlier, on May 26, Moneycontrol reported that the two boards were considering approval for fundraising plans totaling around $3.5-4 billion. The group intends to channel the proceeds into airports and new energy ventures, including green hydrogen.
Adani Enterprises disclosed in its stock exchange filing that its board sanctioned the issuance of securities for up to Rs 16,600 crore through qualified institutional placement (QIP) or other permissible means in one or more tranches, pending shareholder approval at the company’s annual general meeting on June 24.
The Adani group’s decision to raise funds through equity dilution coincides with a period when Adani group stocks have rebounded from the impact of the Hindenburg Research report from January 2023, reaching pre-Hindenburg levels.
On May 24, Moneycontrol noted that six Adani Group stocks, including Adani Enterprises Ltd, Adani Green Energy Ltd, and Adani Ports & SEZ, have recovered losses incurred following a critical Hindenburg report and are now trading above their January 2023 levels, when the report was published. However, Adani Total Gas, Adani Energy Solutions, Adani Wilmer, and NDTV remain below pre-Hindenburg levels, with Adani Total Gas down 74 percent, Adani Energy Solutions down 59 percent, Adani Wilmar down 35 percent, and NDTV down 11 percent.
The surge in Adani Group’s stocks over the past two sessions has propelled the market value of the group stocks above $200 billion. Year-to-date, Adani Ports and Special Economic Zone Ltd and Adani Power Ltd have been notable performers, registering gains of more than 40 percent and 35 percent, respectively. Conversely, New Delhi Television Ltd has experienced a decline of 5.5 percent, while Ambuja Cements and Adani Entertainment have seen significant increases, rising 25 percent and 20 percent, respectively.
Due to the resurgence in Adani group stocks, Rajiv Jain’s GQG, which emerged as a key supporter for the group following the short seller report, has witnessed its investment in Adani stocks surge by 150% to $10 billion.
