Adani Enterprises to consider fundraising after scrapped FPO

Adani Enterprises' board will meet on 13th May to approve the proposal of raising fresh funds, months after the company pulled out its 20,000 crore follow-on public offer (FPO) amid the Hindenburg controversy.

The scrapping of FPO in February caused the port-to-power conglomerate's market worth to drop by more than $140 billion.

‘’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,'' company's regulatory filing said to the stock exchanges on 10th May.

Adani Green Energy, the organization's arm for renewable energy, also made the announcement that it will seek funding after its board on May 13 approves the idea.

On May 12, the Supreme Court will hear the Securities and Exchange Board of India's (SEBI) request for a six-month extension to finish the investigation into the Adani Group.

Sebi had requested an extension from India's apex court in order to complete its probe into the claims made against the conglomerate by US-based short seller Hindenburg.

The securities regulatory body said that Adani Group's transactions involving listed, unlisted, and offshore businesses need further inquiries. US short-seller Hindenburg accused the Gautam Adani-led business of regulatory disclosure lapses and stock price manipulation in a report that was made public in late January.

The Adani Group, on the other hand, has denied the accusations and maintained that it conforms with all legal and disclosure obligations. Adani Enterprises announced last week that it has re-appointed executive chairman Gautam Adani's for another five years.

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Along with reporting a more than doubling of net profit to 722 crore in Q4FY23, the company had strong growth in its road and airport sectors.

Adani Enterprises' overall net profit for the fiscal year that ended in March 2023 tripled from the previous year to $2,472 crore, while its sales increased by more than 97% to $1.32 lakh crore. For the fiscal year 2022–2023, the board approved a dividend of $1.20 per share.

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