Adani Group looks to raise $5 billion in equity. All we know so far

The Adani Group, led by billionaire Gautam Adani, is out to raise as much as $5 billion in equity capital. 

The board of directors of Adani Enterprises, the group’s flagship company, will today consider and approve the proposal of raising funds.

What has Adani Enterprises said about the meeting?

The company said its board will meet in Ahmedabad to consider the proposal of raising of funds by way of further public offering or a preferential allotment, including a qualified institutions placement or through any other permissible mode.

Why is this development important?

This development is important since the Adani Group has faced much criticism for being over-leveraged, even as shares of its group companies have skyrocketed and Adani’s own net worth has ballooned, making him the second richest man in the world. 

According to a Bloomberg report,  Gautam Adani is courting sovereign wealth funds to raise roughly $5 billion in equity across his sprawling business empire and reduce leverage. 

Flagship firm Adani Enterprises Ltd. is considering issuing about $1.8 billion to $2.4 billion in new shares as soon as next year, Bloomberg reported. 

The $5 billion to $10 billion target may include the funds raised in the potential Adani Enterprises share issue.

According to the report, the equity fundraising plans are part of what the Adani group calls its systematic capital management program, which has been in place since 2019 and under which the Qatar Investment Authority and Abu Dhabi-based International Holding Co. have previously invested in the group. 

The fundraising will start with Adani Enterprises and is separate from the group’s plans to raise debt.