MUMBAI: Adani Enterprises, the flagship of the Adani Group, plans to launch a $1-billion share sale by mid-Sept, Reuters reported.
The offering of existing shares will mark Adani Enterprises’ return to the capital market after it withdrew a $2.5-billion follow-on offering in Feb last year after US short seller Hindenburg Research accused the conglomerate of improper use of offshore tax destinations and stock price manipulation.The group had denied the allegations.
Separately, Adani Enterprises said its chairman Gautam Adani hasn’t specified when he will step down from his current role nor when he will hand over control of the group to the next generation.
Adani Enterprises issued the statement after Bloomberg reported that Gautam (62) plans to step down from the chairman’s position at the age of 70, transferring control of his empire to his sons and nephews by early 2030s. “Further, (Gautam) has been misquoted about heirs and equal beneficial interest in the family trust. He had, however, mentioned the involvement of his two sons and two nephews in various businesses of the group,” the statement said
A week ago, group company Adani Green Solutions had raised $1 billion through the qualified institutional placement (QIP) route. Adani Enterprises too plans to raise $1 billion through the QIP route. It has been working with domestic and international banks on the same. The share sale will help Adani Enterprises broaden its non-promoter shareholder base.
In May, the board of Adani Enterprises had approved a proposal to raise Rs 16,600 crore through the QIP route. QIP is a less regulated route than a FPO to raise money from such institutions as banks and funds. Through the QIP, promoters will see their stake diluted in the post-equity capital of Adani Enterprises. Promoters own about 75% in the flagship company of the conglomerate.
“The bankers to the deal have been briefed by Adani officials and are targeting to launch the share sale by late Aug or early Sept. Right now $1 billion is being worked upon, though the bankers have approval for a higher fund raise,” said the Reuters report, quoting sources. Adani Enterprises has hired ICICI Securities, SBI Capital Markets and Jefferies for the fund-raise programme. The company last week told analysts that it plans to do a QIP to fund its green hydrogen initiatives. “We are looking to fast-track our green hydrogen. So, we are looking to have the QIP done at the earliest,” said the company’s deputy CFO Saurabh Shah.
“Adani Enterprises wants to attract certain US investors that are focused on infrastructure but have never looked at India,” Reuters said.
Adani Energy Solutions QIP last week got bids from utility-focused US investors, sovereign wealth funds from the UAE and Qatar, and Indian mutual funds. The issue received bids for six times as many shares as were on offer.
The offering of existing shares will mark Adani Enterprises’ return to the capital market after it withdrew a $2.5-billion follow-on offering in Feb last year after US short seller Hindenburg Research accused the conglomerate of improper use of offshore tax destinations and stock price manipulation.The group had denied the allegations.
Separately, Adani Enterprises said its chairman Gautam Adani hasn’t specified when he will step down from his current role nor when he will hand over control of the group to the next generation.
Adani Enterprises issued the statement after Bloomberg reported that Gautam (62) plans to step down from the chairman’s position at the age of 70, transferring control of his empire to his sons and nephews by early 2030s. “Further, (Gautam) has been misquoted about heirs and equal beneficial interest in the family trust. He had, however, mentioned the involvement of his two sons and two nephews in various businesses of the group,” the statement said
A week ago, group company Adani Green Solutions had raised $1 billion through the qualified institutional placement (QIP) route. Adani Enterprises too plans to raise $1 billion through the QIP route. It has been working with domestic and international banks on the same. The share sale will help Adani Enterprises broaden its non-promoter shareholder base.
In May, the board of Adani Enterprises had approved a proposal to raise Rs 16,600 crore through the QIP route. QIP is a less regulated route than a FPO to raise money from such institutions as banks and funds. Through the QIP, promoters will see their stake diluted in the post-equity capital of Adani Enterprises. Promoters own about 75% in the flagship company of the conglomerate.
“The bankers to the deal have been briefed by Adani officials and are targeting to launch the share sale by late Aug or early Sept. Right now $1 billion is being worked upon, though the bankers have approval for a higher fund raise,” said the Reuters report, quoting sources. Adani Enterprises has hired ICICI Securities, SBI Capital Markets and Jefferies for the fund-raise programme. The company last week told analysts that it plans to do a QIP to fund its green hydrogen initiatives. “We are looking to fast-track our green hydrogen. So, we are looking to have the QIP done at the earliest,” said the company’s deputy CFO Saurabh Shah.
“Adani Enterprises wants to attract certain US investors that are focused on infrastructure but have never looked at India,” Reuters said.
Adani Energy Solutions QIP last week got bids from utility-focused US investors, sovereign wealth funds from the UAE and Qatar, and Indian mutual funds. The issue received bids for six times as many shares as were on offer.