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    Adani Enterprises raises $500 million through share sale to insurance and MF firms | Company News

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    Adani

    Last month, the company also raised around Rs 800 crore in its first-ever retail bond sale which saw strong demand |(Photo: Shutterstock)

    2 minutes of reading Last update: October 11, 2024 | 1:10 p.m. STI

    Adani Enterprise, the flagship company of billionaire Gautam Adani, has raised $500 million through a share sale to local insurance and mutual fund companies and an existing US-based investor, two people said directly informed sources.

    The share sale marks the company’s return to the stock markets after it abandoned a $2.5 billion plan in February last year following a short seller’s report Hindenburg accusing the Adani group of abusing offshore tax havens and manipulating stocks. The group has denied the allegations.

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    The stock sale launched Wednesday was four times oversubscribed, receiving bids of up to $2 billion, according to the sources, who asked not to be identified because the information is private. SBI Life Insurance along with other local insurance and mutual fund companies, as well as US-based GQG Partners, have invested in the issue, they added.

    US investment firm GQG Partners’ $1.87 billion injection last year into Adani Group companies after the short-selling report helped restore some confidence in the conglomerate.

    Adani Enterprises in May approved fundraising of up to $2 billion, including through the so-called qualified institutional placement (QIP) method, used by publicly traded Indian companies to raise funds from large institutions.

    The company had initially planned to raise more funds if market conditions permitted, but due to market volatility and the geopolitical situation, it decided to raise only $500 million for now and still has several options for raising funds in the future, one of the sources said.

    The company, which manages the group’s mining, airport and defense activities, plans to use the proceeds from the share sale to finance new energy projects, create a polyvinyl chloride (PVC) plant and repay the company’s debt. its airport unit, according to a stock exchange. notice Wednesday

    Last month, the company also raised around Rs 800 crore in its first-ever retail bond sale which saw strong demand.

    Adani, SBI Life Insurance and GQG Partners did not immediately respond to a Reuters request for comment.

    It will be the second share sale of an Adani group company this year, after its power transmission unit raised $1 billion in July with investments from sovereign wealth funds from the UAE and the Qatar, as well as Indian mutual funds.

    (Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

    First publication: October 11, 2024 | 1:10 p.m. STI

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