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The flagship firm of the Adani Group, Adani Enterprises Ltd, is set to raise around INR 24,930 crore through a rights issue priced at INR 1,800 per share a discount of approximately 24% to its recent closing price. Existing shareholders as of the upcoming record date of 17 November will be entitled to subscribe to three rights shares for every 25 shares held. The company plans to issue roughly 13.85 crore partly paid-up equity shares. This move comes on the back of expanding infrastructure investments and a prior board approval to raise up to INR 25,000 crore.
The board of Adani Enterprises has approved a rights issue to mobilise up to INR 25,000 crore through partly paid-up equity shares with a face value of Re 1 each. The issue price has been fixed at INR 1,800 per share, representing a 24 % discount to the closing stock price on the preceding trading day. For every 25 fully paid shares held as of the record date (17 November), shareholders will have the right to subscribe to three additional equity shares. Advertisement
The number of shares to be issued is approximately 13.85 crore, which will take the company's total outstanding equity post-issue to about 129.27 crore shares, assuming full subscription. The rights issue is positioned as a tool to strengthen the capital base and support the company's large-scale expansion across its infrastructure, energy and airport businesses. The company had earlier reported that its gross debt stood at around INR 92,065 crore in the September quarter, underscoring the need for fresh equity.
Historically, Adani Enterprises cancelled a planned INR 20,000 crore follow-on public offering in 2023 amid regulatory concerns, making this rights-issue effort one of its largest fund-raising moves to date. By providing existing shareholders a chance to participate at a discounted price, the company is seeking to protect ownership interests while raising significant equity. The subscription schedule includes an initial payment of INR 900 per share at the time of application (face value Re 0.50 and premium INR 899.50), with the remaining INR 900 to be called in two separate phases one around January and the next around March next year.
This fund-raise follows the company's recent financial performance where an adjusted profit fell significantly in the second quarter (ended 30 Sept) due to weakness in its coal trading business, despite an exceptional gain from the sale of a stake in AWL Agri Business. The rights issue thus appears timed to bolster the balance sheet in a period of earnings pressure and elevated expansion needs.
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