Adani revives fundraising plan after aborted FPO in February
1 min read 10 May 2023, 11:57 PM ISTThe fundraising comes amid the fallout from US-based short seller Hindenburg Research alleging accounting fraud and stock manipulation against the group. Adani Group has denied the allegations, which were made in a report on 24 January, three days before the FPO opening.
PremiumMumbai: Three months after it pulled a ₹20,000 crore follow-on public offering (FPO) in the wake of the Hindenburg report, Adani Enterprises (AEL) is planning to raise an unspecified amount through the issuance of equity or other eligible securities, the company informed the stock exchanges late on Wednesday evening.
“...a meeting of the board of directors of Adani Enterprises Ltd will be held on Saturday, 13 May 2023 at Ahmedabad, inter alia, to consider and approve the proposal of raising of funds by way of issuance of equity shares or any other eligible securities (“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…," AEL informed the bourses.
The fundraising comes amid the fallout from US-based short seller Hindenburg Research alleging accounting fraud and stock manipulation against the group. Adani Group has denied the allegations, which were made in a report on 24 January, three days before the FPO opening.
A trading head from a private bank said the group would have to raise funds through dilution or other means for funding capex and cutting debt.
The objects of the FPO, among others, were to fund the capex of green hydrogen projects and repay debt. However, the group was hobbled after the Hindenburg allegations, with share prices plunging across the group.
The allegations are being examined by the markets regulator The Securities and Exchanges Board of India, and monitored by the Supreme Court. The fortunes of the group improved after US-based boutique investment firm GQG Partners, founded by Rajiv Jain, picked up a $1.87 billion stake in AEL, Adani Ports, Adani Green Energy and Adani Transmission from an Adani family trust early in March.
The AEL share closed at Rs1,892 on the NSE on Wednesday. It has recovered 86% from a 52-week low of ₹1,017.45 following the Hindenburg report.
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