Two Adani Group firms to raise up to $2.57 billion from the market

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Signage of Adani Group at company’s gas station in Ahmedabad, India, on Wednesday, Feb. 1, 2023.

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Two Adani group companies including the Indian conglomerate’s flagship firm announced plans on Saturday to raise up to $2.57 billion from the market, months after a short-seller report battered investor confidence and drove share prices down.

India’s Adani Transmission said its board approved a plan to raise up to 85 billion rupees ($1.0 billion) from the stock market. Adani Enterprise said in a filing to exchanges that its board had approved plans to raise up to 125 billion Indian rupees ($1.53 billion) through similar modes.

U.S.-based short-seller Hindenburg Group’s January report battered investor confidence and drove share prices of the group down.

Adani has denied all allegations even as India’s market regulator is probing Hindenburg’s allegations as well as Adani group’s related-party dealings following a Supreme Court directive.

Adani Transmission and Adani Enterprise, billionaire Gautam Adani’s flagship entity, said in separate statements they planned to raise the funds via selling equity shares through qualified institutional placements or other permissible modes.

Adani Green Energy Ltd, which was also expected to announce similar funding plans, on Friday rescheduled its board meeting to May 24.

A planned $2.5 billion share sale by Adani Enterprise fell through in the wake of the scathing short-seller report.

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