 "Adani Enterprises board approves Rs 16,600 crore fundraising via QIP")
Adani Enterprises' board has approved plans to raise Rs 16,600 crore through the Qualified Institutional Placement (QIP) route, the company said in an exchange filing on Tuesday.
QIP is a capital-raising mechanism predominantly used in India. It allows listed companies to issue equity shares, fully and partly convertible debentures, or other securities (excluding warrants) convertible to equity shares to qualified institutional buyers (QIBs).
"We wish to inform you that the Board of Directors... has inter-alia approved raising funds by issuing equity shares with a face value of Re 1 each of the Company and/or other eligible securities for an aggregate amount not exceeding Rs 16,600 crore. This will be achieved through QIP or other permissible modes in one or more tranches," Adani Enterprises said.
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The decision is contingent upon obtaining necessary approvals, including a nod at the Annual General Meeting (AGM) scheduled for June 24, and other regulatory consents.
This latest fundraising plan follows a previous approval in May 2023, where Adani Enterprises intended to raise Rs 12,500 crore through QIP but did not proceed with the initiative.
In a related move, Adani Energy Solutions announced on Monday its plan to raise up to Rs 12,500 crore through QIP or other permissible modes.
Following the fundraising announcement, shares of Adani Enterprises were trading flat at Rs 3,295.20 on the BSE. The stock has now recovered almost all the losses incurred during the Hindenburg crisis last year, which led to the cancellation of a Rs 20,000 crore follow-on public offer (FPO).
Expanding digital and consumer services
Earlier today, reports emerged that Adani Group is considering applying for a licence to operate on the Unified Payments Interface (UPI). Adani is also exploring the provision of online shopping services through the Open Network for Digital Commerce (ONDC), a government-backed public e-commerce platform.
These services could be integrated into Adani One, the company's consumer app launched in 2022, which currently offers flight and hotel bookings.
These services could be integrated into Adani One, the company's consumer app launched in 2022, which currently offers flight and hotel bookings.
For the March quarter, Adani Enterprises reported a consolidated net profit of Rs 451 crore, a 38 per cent decline from the Rs 722.48 crore posted in the same quarter of the previous financial year.