Adani to raise ₹20,000 crore through fresh share issue

Adani Enterprises Ltd. will raise funds through the issue of fresh equity shares

Billionaire Gautam Adani's conglomerate on Friday said it will raise ₹20,000 crore in equity to fund the massive expansion at his sprawling business empire that now spans from ports to energy to cement.

Adani Enterprises Ltd, the flagship firm of Asia's richest person, will raise funds through the issue of fresh equity shares, it said in a stock exchange filing.

The public offering will help Adani Enterprises Ltd (AEL), which is the business incubator for the group and currently houses businesses from civil aviation to data centres, diversify the shareholder base and build its credibility and acceptance among investors.

Promoters currently hold 72.63% shares of AEL. Of the remaining 27.37%, almost 20% is held by insurance companies and foreign portfolio investors.

Shares of AEL have more than doubled in the last one year, giving it a market value of ₹4.46 lakh crore.

Benchmark S&P BSE Sensex index has risen just 5.4% over the same period.

In the stock exchange filing, AEL said its board of directors met on Friday and approved “raising of funds by way of a further public offering through a fresh issue of equity shares by the company aggregating up to Rs 20,000 crore.” The company will seek shareholder approval for the offering through a postal ballot.