Hindenburg Research report 'won't impact' Adani Enterprises' $2 billion QIP

Fundraise by early next month, say top group officials

Adani Enterprises (AEL), the flagship company of the Adani group, is going ahead with its plans to raise funds of up to $2 billion via a qualified institutional placement (QIP) by early next month, said top officials of the group.

During the roadshows in the last few weeks, the group’s top officials met investors across the world and received go­od response for the share sale, they said. The report by US-based short seller Hinden­burg Research “will not impact” the fundraise plans, they added.

The AEL board had approved fundraising of Rs 16,660 crore via the QIP route in May this year. On Monday, AEL shares closed 1 per cent lower at Rs 3,152 a share — the first day of trading after the Hindenburg report was released on Saturday evening. The group has denied the allegations, saying the Hindenburg report is “malicious, mischievous and manipulative”.

Early this month, Adani group company Adani Energy Solutions (AESL), a electricity transmission firm, successfully raised Rs 8,373 crore ($1 billion) via a QIP — the largest in India's power sector. The QIP was AESL’s first equity raise in the capital market since its demerger from AEL in July 2015. 

In July, Adani Green Energy, India’s largest renewable energy firm, had raised $400 million financing from a consortium of international lenders for its under-construction 750 MW solar power projects in Rajasthan and Gujarat.

“During the roadshows, several marquee investors showed their interest to invest in the AEL share sale,” the officials said.

AEL will be using the funds for its new projects as it plans to invest up to Rs 1.3 trillion in FY25 to expand its capacity across its portfolio companies. Among its portfolio companies, Adani Green Energy will invest Rs 34,000 crore to expand its facilities in Gujarat’s Khavda.

The group plans to invest $100 billion in the next 10 years in the energy transition and infrastructure sectors. Of this, it will be investing $21 billion in the airport business and plans to list the business by FY28. The airport company is currently housed under AEL.

“Several of our assets will be commissioned this year, including the Navi Mumbai airport project,” said one of the top officials.

The group’s portfolio investment was now largely powered by funds from operations with limited third-party capital requirements. The group earned Rs 82,000 crore of cash flows in FY24, and its own cash flow will play an important role in funding future projects.