Adani Enterprises, the flagship of ports-to-energy conglomerate Adani Group, said it would raise 200 billion Indian rupees ($2.45 billion) in India’s most extensive follow-on new share offering.
The proposed fundraising comes as the group led by Gautam Adani, the world’s third-richest person, aggressively expands into sectors such as cement and healthcare amid some concerns about its high debt levels and significant shareholding of the promoters.
The share offering would increase the company’s public float from the current level of 27.4%. Rival Reliance Industries’ public float stands at around 49%.
“Adani needs capital at the holding level. It’s the flagship company. They need money for many new initiatives they’re seeding, acquisitions and for new projects,” a source with direct knowledge of the transaction said.
The group has made $13.8 billion worth of acquisitions so far this year, according to Dealogic data, the highest number in a year and more than double the year before.
Adani’s acquisitions this year include Ambuja Cements and ACC for $10.5 billion. It also launched an acquisition of the Indian news channel NDTV.
Adani, whose empire encompasses gas and power projects and a ports and logistics business, said in September that his company would invest more than $100 billion over the next decade, with 70% going into the energy transition space.
The person added that the company plans to submit a draft prospectus by December 31 and raise funds by March 31, but it will depend on market conditions.
Adani did not immediately respond to Reuters inquiries about the timetable and rationale for the fundraising.
Debt research firm CreditSights, part of Fitch Group, had previously said Adani would continue to seek strategic capital partners after raising concerns about the group’s high debt levels. read more
Adani Enterprises shares are up nearly 130% this year, as of the last close, far outpacing a 6.5% gain in the top-tier Nifty 50 index.
Companies that are already listed make FPOs to diversify their shareholding. The previous largest FPO was a Rs 150 billion share sale in 2020 by Yes Bank