Adani Enterprises Announces Board Meeting to Discuss Fundraising Plans
Adani Enterprises, the flagship company of the Adani group, has revealed its intention to hold a board meeting to evaluate and authorize a proposal for raising funds through the issuance of equity shares. This development comes just four months after Hindenburg Research, a prominent short-seller, released a report that caused a significant decline in the stock prices of Adani group companies.
In a filing submitted to the stock exchanges, Adani Enterprises stated that the board of directors will convene on Saturday, May 13, to deliberate and approve the proposal for fundraising. The company aims to secure funds through the issuance of equity shares or other eligible securities using permissible methods.
The specific amount of funds to be raised has not been disclosed at this time. This marks the first instance since Hindenburg’s report that Adani Enterprises is seeking to raise capital from the equity market. Previously, in March, the Adani group had successfully raised approximately $1.9 billion by selling shares to US investment firm GQG Partners.
Hindenburg Research’s report, published in January, levied allegations of stock market manipulation and accounting fraud against the Adani group, resulting in a significant impact on the conglomerate’s stock prices.
Adani Enterprises’ shares witnessed a significant increase of 3.53% to reach Rs 1,958.80 on the BSE as the company announced its intention to raise funds. This move comes in the wake of a report by Hindenburg Research, a short-selling firm, which led to a sharp decline in the stock prices of Adani group companies.
The board meeting scheduled by Adani Enterprises aims to discuss and approve the proposal for raising funds through the issuance of equity shares or other eligible securities. The exact amount of funds to be raised was not disclosed in the announcement.
This marks the first instance since the release of Hindenburg’s report that Adani Enterprises is seeking funds from the equity market. Previously, the Adani group had raised approximately $1.9 billion by selling shares to US investment firm GQG Partners in March.
The publication of the report has had a substantial impact on the Adani group, resulting in a market valuation decline of over $100 billion. Although the shares of Adani Group’s companies have partially recovered from their losses since February, Adani Enterprises is still trading at less than half of its peak level reached last year. The conglomerate continues to face the lingering effects of the report, with investor confidence and market performance yet to fully rebound.