Adani Enterprises gets board nod to raise Rs 16,600 crore via QIP

The proceeds will be used by Adani Enterprises Ltd (AEL) for its various projects, including the expansion of airports

The board of Adani Enterprises, the flagship firm of the conglomerate, on Tuesday approved raising Rs 16,600 crore by way of qualified institutional placement (QIP) of shares or any other instruments, it told stock exchanges in a statement.

The firm will use the proceeds to fund various projects, including the expansion of airports. The approval came a day after its transmission tower firm, Adani Energy Solutions, cleared plans to raise Rs 12,500 crore by way of a QIP or any other equity instruments. 

With this, the group will be raising a massive Rs 29,100 crore by selling shares to investors by July.

Shares of Adani Enterprises closed at Rs 3,244 a share, down 1.33 per cent, while Adani Energy Solutions ended the day 1.38 per cent lower at Rs 1,089 a share.

Adani Enterprises is valued at Rs 3.69 trillion in the stock markets, with promoters holding a 72.61 per cent in the company. Adani Energy Solutions, on the other hand, is valued at Rs 1.21 trillion, with promoter stake at 73.22 per cent.

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The Adani group shares have made a comeback in the past year after crashing at the end of January 2023 following a report by US-based short-seller Hindenburg Research. The group denied the allegations, prepaid loans, and sold shares to global investors, including GQG Capital, Qatar Investment, and IHC of Abu Dhabi to bolster investor confidence.

On May 16, Adani Energy Solutions acquired a 100 per cent stake in Essar Transco after obtaining requisite regulatory and other approvals for an enterprise value of Rs 1,900 crore. Adani Energy Solutions is the country’s largest private transmission company, with a presence across 17 states and a cumulative transmission network of 21,182 circuit km and 57,011 MVA transformation capacity. In its electricity distribution business, Adani Energy Solutions serves around 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ.

Adani Energy Solutions is also ramping up its smart metering business and is on course to become India’s leading smart metering integrator with an order book of over 22.8 million metres and is planning to increase its capital expenditure.

Adani Enterprises’ capital expenditure, on the other hand, is centred around the green hydrogen ecosystem, airport management, data centres, roads, and primary industries like copper and petrochemicals - all of which have significant scope for value unlocking. The flagship company also plans to participate in the next round of airport privatisation as and when the government auctions them for private participation.