Hindenburg-hit Adani Enterprises to consider fundraising on Saturday

Board of Adani Enterprises Ltd, Adani Group's flagship arm, will on Saturday consider fundraising through various methods, said the company on Wednesday. The board will meet in Ahmedabad.

The board will consider raising funds by way of issuance equity shares or other eligible securities through a private placement, a qualified institutions placement or a preferential issue, the company said in a statement.

"The board of directors of Adani Enterprises Ltd will be held on Saturday, 13th May 2023 at Ahmedabad to consider and approve the proposal of raising of funds by way of issuance equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable laws," said Adani Enterprises in a stock exchange filing.

This is the first time the company will look to raise funds after withdrawing Rs 20,000-crore FPO in February in the backdrop of US short seller Hindenburg's scathing allegations against the ports-to-power conglomerate.

Hindenburg Research raised concerns around Adani Group's governance practices in a January report, which led to a near $100-billion rout at the stock market for the conglomerate's listed firms.

Hindenburg Research flagged concerns about high debt and alleged improper use of offshore tax havens and stock manipulation. Adani denied the allegations.

Market regulator Sebi is probing Hindenburg's allegations as well as Adani Group's related-party dealings following a Supreme Court directive.

Last week, Adani Enterprises said it re-appointed Adani Group chairman Gautam Adani as an executive chairman for a term of five years. 

The company reported more than doubling of net profit in the March quarter on the back of healthy growth in airports and road businesses.

Net profit in January-March at Rs 722.48 crore, or Rs 6.34 per share, was 137 per cent higher than Rs 304.32 crore, or Rs 2.77 a share, in the same period last year, according to a stock exchange filing by the company.

AEL, which is incubating business from clean energy to airports and data centres, saw revenue soaring to Rs 31,716.40 crore in the fourth quarter of the 2022-23 fiscal from Rs 25,141.56 crore a year back.

In a statement, it said passenger movement at the seven airports it operates rose 74 per cent to 21.4 million while cargo movement was up 14 per cent.

Road construction business as well as mining and primary industry business also contributed to the earnings increase.

On Wednesday, Adani Enterprises' scrip on BSE closed 0.2% lower at Rs 1,891.