India’s Adani Energy Solutions announced on Monday (27 May, 2024) that its board has permitted a fundraising of up to Rs 12,500 crore ($1.50 billion) through Qualified Institutional Placement (QIP) or other permissible modes.
According to Reuters, the power distribution firm plans to raise capital through share issuance or other securities via qualified institutional placements or other permissible means. Adani Energy hasn’t disclosed the purpose or pricing for the securities issuance.
Earlier, on May 24, Moneycontrol reported that both Adani Energy and Adani Enterprises are set to collectively approve a fundraising plan ranging between $3.5-4 billion.
Four other stocks, namely Adani Total Gas, Adani Energy Solutions, Adani Wilmer, and NDTV, continued to trade below their levels before the Hindenburg incident.
Adani Total Gas remains 74% lower, Adani Energy Solutions is down by 59%, Adani Wilmar by 35%, and NDTV by 11%.
According to Moneycontrol, the recent surge in Adani Group’s stocks has lifted their collective market value above $200 billion.
Adani Ports and Special Economic Zone Ltd and Adani Power Ltd have notably surged, gaining over 40% and 35% respectively year to date.
However, New Delhi Television Ltd has shown weaker performance, declining by 5.5%. Meanwhile, Ambuja Cements and Adani Entertainment have recorded substantial gains, rising by 25% and 20% respectively.
Adani Enterprises Plans for Raising More Funds
Adani Enterprises, the flagship company of the Adani Group, will also initiate fundraising on Tuesday.
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In a separate announcement, Adani Enterprises expressed last week that its board of directors will convene on 28 May, 2024 (Tuesday) to discuss and approve the plan to raise funds through equity shares or other eligible securities.
According to media reports, Adani Energy Solutions witnessed a 13.26% decline in its consolidated net profit to Rs 381.29 crore in January-March 2024 due to increased expenses.
In the same period of the previous financial year 2022-23, its net profit after tax was Rs 439.60 crore. For the entire financial year FY24, the company’s net profit was Rs 1,195.61 crore, down from Rs 1,280.60 crore in FY23.
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