file. , Photo Credit: Reuters
Billionaire Gautam Adani’s group on Friday said it will raise ₹20,000 crore in equity to finance a massive expansion in his sprawling business empire that now spans from ports to energy and cement.
Adani Enterprises Ltd, the flagship firm of Asia’s richest man, will raise funds through issue of fresh equity shares, it said in a stock exchange filing.
The public offering will help Adani Enterprises Limited (AEL), which is the business incubator for the group and currently houses businesses ranging from civil aviation to data centres, diversify its shareholder base and build its credibility and acceptance among investors. Does
The promoters currently hold 72.63% shares of AEL. Of the remaining 27.37%, about 20% is held by insurance companies and foreign portfolio investors.
AEL shares have more than doubled in the last one year, taking its market value to ₹4.46 lakh crore.
The benchmark S&P BSE Sensex index has gained just 5.4% during the same period.
In a stock exchange filing, AEL said its board of directors met on Friday and approved “raising of funds by way of a further public offering by way of a fresh issue of equity shares by the company up to Rs 20,000 crore”. The company will seek shareholder approval for the offer through postal ballot.
The Adani group has said earlier that it is working on a plan to increase the free float.
Adani started AEL in 1988 with a commodity trading business and used them as an incubator of new businesses before spinning them off into separate listed firms.
The group now has a significant presence in ports, airports, roads, power, renewable energy, power transmission, gas distribution, real estate, FMCG, cement and financial services. Recently, the group also entered into media business.
Ports, power, transmission, green energy, gas and edible oil businesses are separately listed companies.
The group has entered into a diverse range of businesses with dealmaking in recent months. It recently acquired the Bharat Cement units of Holcim Ltd for $10.5 billion, India’s second biggest deal of the year.
Bidding is also being done for New Delhi Television Limited (NDTV,