Adani Enterprises to Launch $1.3 Billion Share Sale Next Week: What Investors Need to Know

Billionaire Gautam Adani’s main company, Adani Enterprises Ltd., is preparing to launch a $1.3 billion share sale next week, according to sources. This move comes after a previous share sale was canceled in 2023 following a critical report from short-seller Hindenburg Research.

Adani Enterprises plans to raise the money through a qualified institutional placement (QIP), starting as early as the week of October 7. The deal may include a greenshoe option, which allows for the sale of additional shares if demand is high. The final details are expected to be approved by the board this week. There is strong interest from domestic institutional investors, sources say.

In May, the company’s board approved plans to raise up to 166 billion rupees ($2 billion) through various methods, including selling shares to institutions.

The Adani Group faced significant challenges after the Hindenburg report, which accused the conglomerate of corporate fraud. The report caused a sharp drop in stock prices, wiping out over $150 billion in market value and leading to the cancellation of a $2.5 billion share sale in February 2023.

However, the group has rebounded, making acquisitions like a port in Africa and a $10 billion chip plant. A successful share sale would be seen as a vote of confidence from investors. Adani Enterprises’ shares have risen nearly 12% this year, though they still trail the 18.7% increase in the Nifty 50 index.

The upcoming sale follows Adani Energy Solutions’ $1 billion share sale in August. Additionally, the group and its partner Wilmar International plan to sell 13% of Adani Wilmar Ltd. to comply with India’s shareholding rules.

ICICI Securities, Jefferies, and SBI Capital Markets are assisting Adani Enterprises with the share sale.