Adani Enterprises falls 3% as board to mull fund-raise on November 25

According to a Bloomberg report, the share sale for the fund raise could raise as much as $2.4 billion for the company

Shares of Adani Enterprises, the flagship company of Adani Group, were 3 per cent down to Rs 3,895 on the BSE in Wednesday’s intra-day trade after the company announced that its board will meet on Friday, November 25, to consider capital raising options.

“A meeting of the board of directors of Adani Enterprises will be held on Friday, 25th November 2022, inter alia, to consider and approve the proposal of raising of funds,” the company said in a regulatory filing.

The fund raising will be by way of a further public offering (FPO), preferential allotment (including a qualified institutions placement or through any other permissible mode) and/or combination thereof as may be considered appropriate, by way of issue of equity shares or any other eligible securities, Adani Enterprises said.

According to a Bloomberg report, the share sale could raise as much as $2.4 billion for the company. The issuance will test investor appetite for a stock that has had outsized gains, compounded by lower liquidity relative to peers and sparse analyst coverage. The conglomerate has previously attributed the small free float to the Adani family holding about 75 per cent of Adani Enterprises, and earlier this year said it is working on plans to increase the free float. CLICK HERE FOR FULL REPORT

Meanwhile, the stock of Adani Enterprises had hit a record high of Rs 4,098.10 on November 16. Despite today’s fall, the stock has outperformed the market with a gain of 18 per cent in the last one month as compared to a 3.7 per cent rise in the S&P BSE Sensex. In the past one year, it has zoomed 131 per cent versus a 5 per cent gain in the benchmark index.

Adani Enterprises’ strategic business investments are centered around green hydrogen ecosystem, airport management, roads, data center and primary industry like copper and petrochemicals, all of which have significant scope for value unlocking.

Through Adani New Industries Ltd (ANIL), the group’s recent incubator in the production of renewable energy like green H2 and downstream products (ammonia, urea & methanol), Adani Enterprises aims to emerge as the world’s primary leader in the green H2 ecosystem.

Meanwhile, in the July-September quarter (Q2FY23), Adani Enterprises’ consolidated net profit more-than-doubled over last year to Rs 461 crore. The company’s consolidated revenue, too, climbed nearly threefold year-on-year (YoY) to Rs 38,175 crore. Consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 69 per cent YoY to Rs 2,136 crore.

"The robust growth in the topline and operational performance was on account of strong earnings show by integrated resource management business and airports vertical," the company said.