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Adani Enterprises shares rise as board mulls raising funds. Key details

Adani Enterprises shares rise as board mulls raising funds. Key details

Adani Enterprises announcement came after Gautam Adani's group recently said it would invest over $150 billion across businesses ranging from data centres to green energy and to airports and healthcare

The stock rose 0.60 per cent to hit a high of Rs 4,060 on BSE, taking its year-to-date rise to 136 per cent. The scrip has rallied a whopping 4500 per cent in the last five years The stock rose 0.60 per cent to hit a high of Rs 4,060 on BSE, taking its year-to-date rise to 136 per cent. The scrip has rallied a whopping 4500 per cent in the last five years

Shares of Adani Enterprises were trading higher in Wednesday's trade after the Adani Group flagship said it was looking to raise of funds by way of further public offering (FPO), preferential allotment or a combination of both. A meeting of board of directors will be held on Friday, November 25, at Ahmedabad, regarding the same.

The move came after Gautam Adani's group recently said it would invest over $150 billion across businesses ranging from data centres to green energy and to airports and healthcare, in its pursuit of joining the elite global club of companies with $1 trillion valuations.

The stock rose 0.60 per cent to hit a high of Rs 4,060 on BSE, taking its year-to-date rise to 136 per cent. The scrip has rallied a whopping 4500 per cent in the last five years. 

According to a media report, the company has initiated a FPO to raise as much as Rs 20,000 crore from retail and institutional investors.

"Notice is hereby given that a meeting of the board of directors of Adani Enterprises will be held on Friday, 25th November 2022 at Ahmedabad, inter alia, to consider and approve the proposal of raising of funds by way of further public offering, preferential allotment and/or combination thereof as may be considered appropriate, by way of issue of equity shares or any other eligible securities, subject to all such regulatory / statutory approvals as may be required including the approval of shareholders of the company," Adani Enterprises said post maket hours of Tuesday.

Adani Enterprises is Adani Group's business incubator, Adani Group Chief Financial Officer Jugeshinder 'Robbie' Singh recently suggested.

"Ports, power, transmission and gas businesses were all incubated by this company and when they reached a certain degree of maturity, they were spun off into separate companies and listed on bourses," PTI quoted him as saying.

"The same will be the approach for several new businesses such as airports being nurtured under AEL. When they become independent and can fund their own capital expenditure plans, they will be separated," PTI suggested Singh as saying.

In October, Singh detailed the growth plans of the group,  where he suggested plans to invest $50-70 billion in green hydrogen business and $23 billion in green energy over the next 5-10 years, he said. The group is looking to invest $7 billion in electricity transmission, $12 billion in transport utility and $5 billion in the road sector, PTI recently reported. 

Adani Group recently forayed into the cement sector by acquiring ACC and Ambuja Cement in a $10 billion investment.

It is looking to foray into the petrochemical business with plans to set up a 1 million tonnes per annum PVC manufacturing facility at an investment of $2 billion and would enter the copper sector with a 0.5 million tonnes a year smelter at an investment of USD 1 billion, PTI reported. The healthcare sector foray that will include insurance, hospitals and diagnostic and pharma would see an investment of $7-10 billion, with some coming from Adani Foundation.

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