India's Adani Enterprises to raise $2.45 bln via new share sale
Adani Enterprises , the flagship company of ports-to-energy conglomerate Adani Group, said it will raise 200 billion Indian rupees ($2.45 billion) through India's largest follow-on public offering of new shares. The proposed fund raise comes as the group led by Gautam Adani, the world's third richest person, aggressively expands into an slew of sectors including cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.
- Country:
- India
Adani Enterprises , the flagship company of ports-to-energy conglomerate Adani Group, said it will raise 200 billion Indian rupees ($2.45 billion) through India's largest follow-on public offering of new shares.
The proposed fund raise comes as the group led by Gautam Adani, the world's third richest person, aggressively expands into an slew of sectors including cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding. The share offering would increase the company's public float from the current 27.4%. In contrast, public shareholders of rival Reliance Industries, led by billionaire Mukesh Ambani, held a 49% stake.
"Adani needs capital at the holding company level. It is the flagship company. They need money for a lot of the new initiatives they are seeding, acquisitions and for new projects," said a source with direct knowledge of the transaction. The group has made acquisitions worth $13.8 billion so far this year, as per Dealogic data, its highest ever in a year and more than double the previous year.
The company plans to file a draft prospectus before Dec. 31 and raise the funds before March 31, but will depend on market conditions, the source added. Follow-on public offerings (FPO)are done by already listed companies to diversify their equity shareholding. The previous largest FPO was a 150 billion-rupee sale in 2020 by Yes Bank ($1 = 81.5500 Indian rupees)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
New Army Chief General Upendra Dwivedi: A Strategic Asset for Indian Army
Indian National Drowns in Glacier National Park
Indian Two-Wheeler Sales Surge by 21.3% in June 2024
Indian 2: Kamal Haasan and Director S Shankar Reunite After 28 Years
Bounce Infinity and Zapp EVs Join Forces for Indian Manufacturing Boost