Adani Group to mull stake sale to raise funds on Saturday

The boards of directors of Adani Enterprises Limited, Adani Transmission Limited, and Adani Green Energy Limited will hold separate meetings on Saturday to consider a proposal to raise funds through issuance of equity shares or other securities, the companies announced through separate exchange filings.

The exchange filings by the companies did not specify the amount they propose to raise, but they said that the said fund-raising would be done either separately or through a combination of modes, which would also include private placement, preferential issue and qualified institutional placement.

Many claim that the current fund-raising announcement is seen by many experts as a test of investor confidence. This move comes more than a hundred days after US-based short-seller Hindenburg Research released a scathing report. Following the report, investor confidence plunged and the group lost billions of dollars in valuation. Some companies of the Adani Group lost nearly two-thirds of their valuation.

The report by Hindenburg Research came a day before the follow-on public offer of Adani Enterprises to raise 200 billion rupees.

Adani Group shares

The shares of Adani Enterprises, Adani Transmission and Adani Green Energy at 12:48 pm IST were at Rs 1,992.20, up by 5.29 per cent, Rs 910, up by 2.23 per cent and Rs 915.55 up by 1.46 per cent respectively.