Adani Enterprises to Raise Rs 16,600 Crore for Business Expansion

By siliconindia  |  Tuesday, 28 May 2024, 02:46:42 PM IST

Adani Enterprises to Raise Rs 16,600 Crore for Business Expansion
Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, announced its plan to raise Rs 16,600 crore through qualified institutional placement (QIP) or other permissible modes, in one or more tranches. This move is part of the company’s strategy to aggressively expand its diverse business portfolio.
The board of directors at AEL approved the fundraising initiative, which involves the issuance of equity shares with a face value of Rs 1 each. The company stated in a regulatory filing, "The board has inter-alia approved raising of funds… for an aggregate amount not exceeding Rs 16,600 crore or an equivalent amount thereof by way of qualified institutional placement (QIP) or other permissible mode in one or more tranches".
This announcement follows a similar move by Adani Energy Solutions, which on Monday revealed plans to raise up to Rs 12,500 crore through QIP or other modes in multiple tranches. The Adani Group has successfully raised nearly $6 billion from prominent investors since the beginning of last year, reflecting strong investor confidence in its growth trajectory.
Financially, AEL reported a robust performance for FY24, with a 32 percent increase in consolidated EBITDA, reaching Rs 13,237 crore. Profit before tax (PBT) surged by 56 percent to Rs 5,640 crore. The company highlighted significant progress in its emerging core infrastructure businesses, including Adani New Industries Ltd (ANIL), airports, and roads, which have considerably enhanced their operational performance. These sectors' contribution to the overall EBITDA increased to 45 percent in FY24, up from 40 percent in FY23.
For the fourth quarter of FY24, AEL reported an EBITDA of Rs 3,646 crore, compared to Rs 3,974 crore in the same period the previous year. The funds raised will support AEL’s ambitious expansion plans and reinforce its position across various sectors, further driving the Adani Group’s growth and development strategy.

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