Months after cancelled FPO, crisis-hit Adani to consider fundraising on May 13

Adani Enterprises announced that the company's board will hold a meeting on May 13 to approve the proposal of raising of funds. This comes months after the company withdrew its ₹20,000-crore follow-on public offer (FPO) in February amid the Hindenburg row which wiped out more than $140 billion of the port-to power conglomerate's market value.

‘’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,'' according to a regulatory filing by the company to the stock exchanges on May 10.

The group's renewable-energy arm 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.

Meanwhile, the Supreme Court will hear the plea by capital markets regulator Securities and Exchange Board of India (Sebi) seeking a six-month extension to complete the probe on Adani Group on May 12.

Sebi had asked the apex court for the extension to finish its investigation into allegations levelled by US-based short seller Hindenburg against the conglomerate, noting that Adani Group's complex transactions involving listed, unlisted and offshore entities require deeper investigations.

In its report released in late-January, US short-seller Hindenburg levelled allegations on the Gautam Adani-led group of stock price manipulation and lapses in regulatory disclosure. However, the Adani Group had dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

Last week, Adani Enterprises said it re-appointed chairman Gautam Adani as an executive chairman for a term of five years. The company also reported more than doubling of net profit to ₹722 crore in Q4FY23 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 ₹2,472 crore and revenue surged more than 97 per cent to ₹1.32 lakh crore. The board approved a dividend of ₹1.20 a share for the fiscal 2022-23.

On May 10, shares of Adani Enterprises settled 0.16 per cent lower at ₹1,892.10 apiece on the BSE.