Adani Enterprises Eyes $2 Billion Boost: In Talks with Gulf Sovereign Funds for QIP as Adani Group Stock Gears Up for Big Move

Adani Enterprises, led by billionaire Gautam Adani, is reportedly in talks with several institutional investors, including Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA), and GQG Partners, to raise $2 billion through a Qualified Institutional Placement (QIP). This information was shared by sources familiar with the discussions, according to a report from Moneycontrol on October 9.

The company is expected to launch the QIP by the end of October once they receive firm commitments from these investors. The raised funds will be used for capital expenditures and to repay some of the company’s and its subsidiaries’ debts.

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Adani Enterprises’ stock price dropped by 0.42% on Wednesday, closing at ₹3,152.90. Previously, on May 28, the company’s board had approved a plan to raise nearly ₹16,600 crore through a QIP issue. Adani Energy Solutions, another company from the Adani Group, also raised around $1 billion through a QIP earlier this year, which was oversubscribed.

Several major investors, including GQG, Blackrock, Nomura, and domestic mutual funds such as SBI MF, HDFC MF, and Tata MF, participated in previous fundraising efforts.

Additionally, the Adani Group is planning to raise between ₹30,000 crore and ₹40,000 crore over the next three to four years from retail investors through a non-convertible debenture (NCD) issue to diversify its funding sources.

The company’s total debt has increased to ₹50,124 crore in FY2024 from ₹38,320 crore the previous year. Similarly, long-term borrowing rose to ₹43,718 crore in FY2024, compared to ₹32,590 crore in FY2023. External debt also saw a rise, reaching ₹29,511 crore in FY2024 from ₹22,237 crore the previous year.