Adani Enterprises: Should you apply for its Rs 24,930 crore rights issue?

Adani Enterprises has disclosed the details of its Rs 24,930 crore rights issue, pricing each rights equity share at Rs 1,800. The record date for determining shareholder eligibility is set for Monday, 17 November. Eligible shareholders, holding shares as of this date, can subscribe to three rights equity shares for every 25 fully paid-up shares held. Market experts believe that investors should apply for this rights issue, particularly those with high risk appetite. 

Kranthi Bathini, Director Equity Strategy at Wealthmills Securities said that Adani Enterprises has been a wealth creator for investors for last few years considering its large bouquet of business and this stocks is suitable for investors with high risk appetite. "One should apply for its right issue with a long-term perspective."

The rights issue comes as Adani Group prepares for significant capital expenditure, with planned annual investments of $15–20 billion over the next five years. As of September 2025, Adani Enterprises reported a gross debt of Rs 92,065 crore. The issue received in-principle approval from both the BSE and National Stock Exchange of India on 7 November.

It is a well-timed move to strengthen its balance sheet and fund growth in capital-heavy verticals such as airports, copper, and new-energy infrastructure. The company’s FY25 Ebitda rose about 26 per cent YoY, with airports emerging as a strong cash-flow engine, while leverage has moderated and refinancing pressures have eased, said Harshal Dasani, Business Head at INVasset PMS.

"For existing shareholders, this issue offers both an attractive entry discount and a chance to avoid dilution while staying aligned with the group’s long-term infrastructure expansion. However, new investors must weigh execution and regulatory risks inherent to a multi-platform incubator like AEL. Fresh entrants may prefer to observe post-issue performance before committing," he said.

For the quarter ended 30 September 2025, Adani Enterprises reported an 84 per cent year-on-year increase in net profit to Rs 3,199 crore, primarily due to a one-time gain of Rs 3,583 crore. However, profit before exceptional items and tax fell 66.2 per cent to Rs 814 crore. Revenue for Q2FY26 dropped 6 per cent year-on-year to Rs 21,249 crore, attributed to weakness in the core coal trading division, while Ebitda decreased by 10 per cent to Rs 3,902 crore.

Adani Enterprises is reportedly planning multiple public listings between 2027 and 2031, aiming to spin off its airports, roads, metals, and data centre businesses as they approach operational maturity. This strategy is expected to unlock value for investors and optimise capital allocation across its business segments.

DR Choksey noted that AEL has a history of value creation through successful business spin-offs, with airports, copper, and ANIL (Adani New Industries) offering potential future opportunities. The company is focused on capital-efficient growth and improved return metrics, supporting its 15–17 per cent ROA ambition.

"We maintain a bullish stance on AEL as it scales multiple high-growth verticals with visible earnings and asset monetization potential. Using an SOTP (EV/Ebitda) approach across verticals—Airports, IRM, roads, copper, green hydrogen, and data centers—and applying a 15 per cent conglomerate discount, our FY27E valuation implies a target price of Rs 3,500," it said.