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Adani Enterprises to raise around $1.3 billion via QIP, says report; share sale likely to start next week

Swati Verma
By Swati Verma

3 min read | Updated on October 02, 2024, 09:43 IST

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SUMMARY

The terms of the sale may have a greenshoe option, which will be firmed up by the board likely by the end of this week, one of the people said. There’s strong interest from many domestic institutional investors in the equity issue, the report added.

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ADANIENT
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Adani Enterprises reported more than doubling of its net profit in the June quarter (Q1 FY25)

Adani Enterprises reported more than doubling of its net profit in the June quarter (Q1 FY25)

Adani Enterprises QIP, Adani Enterprises fundraising, Adani Enterprises stock price: Adani Group's flagship company, Adani Enterprises, is looking to raise about $1.3 billion through qualified institutional placement (QIP) and is expected to start the process as early as the week starting October 7, Bloomberg reported, citing sources. 

The terms of the sale may have a greenshoe option, which will be firmed up by the board likely by the end of this week, one of the people said. There’s strong interest from many domestic institutional investors in the equity issue, the report added. 

The report further said that Adani Enterprises got board approval in May to raise as much as ₹166 billion (₹16,600 crore) ($2 billion) through various methods, including share sale to institutions.

QIP is one of the ways of fundraising by listed companies where the firms raise capital by issuing equities or other equity convertible securities to qualified institutional buyers (QIBs).

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Adani Enterprises reported more than doubling of its net profit in the June quarter (Q1 FY25) as growth in the new energy business outweighed weakness in coal trading.

Consolidated net profit of Adani Enterprises at ₹1,458 crore in April-June was 116% higher than ₹675 crore logged in the same period a year back.

Adani New Industries (ANIL), the new energy business unit of the company, posted a 3.6x jump in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to ₹1,642 crore on growth in solar manufacturing and wind turbine businesses.

The company is launching QIP at an interesting time. As per a recent report by The Economic Times, in the first eight months of 2024, 55 companies raised ₹58,400 crore through QIPs, the second-highest ever after ₹80,800 crore in 2020. With several companies announcing plans to raise funds, QIPs are on track to break records in 2024.

The corporate sector is taking advantage of the vibrant equity markets to strengthen balance sheets and raise the required resources to fund expansion plans, the report added, quoting market participants.

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ICICI Securities Ltd., Jefferies Financial Group Inc and SBI Capital Markets Ltd. are helping Adani Enterprises with the share sale, Bloomberg News reported in August, citing people familiar with the developments.

Adani Enterprises shares have rallied 33% in the past 12 months. Shares of the Adani Group companies took a heavy beating in early 2023 after Hindenburg Research accused the Adani Group of "brazen stock manipulation" and accounting fraud, leading to a stock market rout. 
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About The Author

Swati Verma
Swati Verma is a business journalist with over 10 years of experience. She closely tracks stock markets and covers breaking news related to markets, business and personal finance.

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