Adani Enterprises to raise up to ₹25,000 crore through rights issue

Fundraise to push growth across airports, data centres, green energy, roads

Adani Enterprises Ltd (AEL), the flagship firm of the Adani group, plans to raise up to ₹25,000 crore through a partly paid-up rights issue — one of the largest equity fundraising plans in India this year — to bolster its balance sheet and catalyse the group’s next growth phase across airports, data centres, green energy and roads.

 

The move marks a renewed push by the Adani group to tap the capital markets following a lull after the Hindenburg Research report in early 2023 had triggered a selloff in group firms’ stocks and a temporary suspension of its earlier plan to raise ₹20,000 crore through a follow-on public offer of shares that year. The share prices of group firms have recovered since then after the promoters sold a part of their stake to a clutch of overseas investors.

 

In a statement to the stock exchanges, the company said the rights issue is aimed at “strengthening its balance sheet further to support the next phase of incubation” as its core infrastructure businesses scale and contribute a growing share to earnings. The company will announce the rights issue entitlement and the date of the issue in due course. The company’s shares closed 2 percent down at ₹2,418 a share on Tuesday. 

 

Reliance Industries Ltd (RIL) had raised ₹53,123 crore in April 2020, the largest ever fund raise by an Indian firm via a rights issue — followed by the rights issues by Vodafone Idea and Bharti Airtel of ₹25,000 crore each, announced in early 2019.

 

AEL said its emerging infrastructure portfolio — spanning airports, digital infrastructure, roads and the green hydrogen ecosystem — now contributes 71 per cent to total Ebitda, with half-year Ebitda from these businesses rising 5 per cent year-on-year to ₹5,470 crore. The group plans to invest $100 billion in various infrastructure projects in India over the next five years.

 

The company emphasised its execution capabilities during the quarter, citing the inauguration of the Navi Mumbai International Airport and completion of its seventh road project. “Each of these new milestones strengthens our diversified model and reaffirms our commitment to deliver infrastructure of national importance,” it said.

 

Group Chairman Gautam Adani said the recent strategic milestones reflect the group’s long-term commitment to building national infrastructure and next-generation energy and digital platforms.

 

“With disciplined execution and strategic diversification, AEL continues to strengthen its position as India’s leading incubator of transformative infrastructure and energy businesses,” he said. The Navi Mumbai airport’s launch, he stressed, “marks a defining moment in India’s infrastructure story and reinforces AEL’s role as a national growth catalyst”.

 

Adani also underscored the group’s momentum in digital infrastructure, citing its partnership with Google to build “India’s largest AI Data Center campus in Visakhapatnam,” as part of broader plans to “build globally competitive businesses that create enduring value for our stakeholders and strengthen the foundation of a self-reliant India”. 

Consolidated profit up 84% 

 

The financial results for the September quarter showed a strong rise in net profit, boosted by a one-time gain. Profit attributable to owners climbed 84 percent to ₹3,199 crore from ₹1,742 crore a year earlier, supported by an exceptional gain of ₹3,583 crore. Revenues fell 6 percent  to ₹21,249 crore from ₹22,608 crore.  “The inauguration of the Navi Mumbai International Airport marks a defining moment in India’s infrastructure story and reinforces AEL’s role as a national growth catalyst. Our strong performance across airports, data centers and roads underscore the momentum of our core infrastructure portfolio,” he said. Operationally, airports remained the standout contributor.AEL noted the “Airports business now tracking at quarterly run-rate of ₹1,000+ crore” in Ebitda. In October, the group announced plans to invest an additional ₹30,000 crore in the second phase of the Navi Mumbai International Airport, which is expected to be completed by 2029.