Gautam Adani’s power transmission unit is looking to raise at least 50 billion rupees ($597 million) through a share sale, the Indian group’s first foray into public equity markets since reports of a scathing short-seller wiped out billions in shareholder value.
- Move aimed at widening investor base, including those from US
- Successful share sale would be powerful marker of recovery
- As Expected, Gold and Silver Are Melting Like Ice
- MCX Silver Tips: Target 1000—2000 Points [Jackpot] Trade With Stop Loss (SL)
- MCX Gold Tips: Target 500—1000 Points [Jackpot] Trade With Stop Loss (SL)
- इंट्राडे में भी 71% लोगों ने कैश में गंवाया पैसा; F&O के बाद इक्विटी सेगमेंट भी बना सट्टेबाजी का अड्डा
- Silver steady ahead of US economic data
- HUL, ITC, Hero Moto among 14 stocks listed by Axis Securities as positive post Budget 2024
- ITC shares breach ₹500 mark for first time on no change in tobacco taxes, Jefferies upgrades to buy
Adani Energy Solutions Ltd. is seeking to raise funds through a so-called qualified institutional placement, or QIP, and plans to finish the share sale by mid-August, people familiar with the matter said on condition of anonymity.
It follows the board’s approval in May to raise as much as 125 billion rupees through various means.
The return to public fundraising is a milestone in the recovery for the Adani Group after U.S. short seller Hindenburg accused it of widespread fraud and corporate malfeasance in early 2023, wiping off more than $150 billion from the group’s market value at one point.
Though the group has since recovered significantly, a successful QIP will boost investor confidence in the giant after it had to cancel a $2.5 billion share sale due to investor pressure following the Hindenburg attack.
Adani Energy is trying to bring in more institutional investors, including some from the US, through the share sale. Such expansion of the investor base is also an attempt to attract more research analysts to cover the firm, one of the people said.
Discussions are ongoing and details of the fundraising, including the size, could still change, the people said. An Adani Group representative did not immediately comment when contacted over phone.
Adani Energy is India’s largest private sector power utility and operates over 21,100 ckm or circuit kilometres (or ckm) of transmission lines, according to its website. The company said it aims to increase its transmission lines to 30,000 ckm by 2030 by tapping organic and inorganic growth opportunities.
On Thursday, the company reported a net loss of Rs 8.24 billion for the April-June quarter.
