Adani to raise $2.45 billion in India’s biggest follow-on share sale

Agencies | New Delhi

The Daily Tribune – www.newsofbahrain.com

Adani Enterprises (ADEL.NS), the flagship company of ports-to-energy conglomerate Adani Group, said it would raise 200 billion Indian rupees ($2.45 bn) in India’s largest follow-on public offering of new shares.

The proposed fundraise comes as the group led by Gautam Adani, the world’s third richest person, aggressively expands into sectors such as cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.

The share offering would increase the company’s public float from the current 27.4% level.

Rival Reliance Industries’ (RELI.NS) public float stands at around 49%. “Adani needs capital at the holding company level. It is the flagship company.

They need money for a lot of the new initiatives they are seeding, acquisitions and for new projects,” said a source with direct knowledge of the transaction.

The group has made acquisitions worth $13.8 bn so far this year, as per Dealogic data, its highest ever in a year and more than double the previous year.

Adani’s acquisitions this year include Ambuja Cements (ABUJ. NS) and ACC (ACC.NS) for $10.5 bn.

It has also launched a takeover of the Indian news channel NDTV (NDTV.NS). Adani, whose empire spans gas and power projects as well as a ports and logistics business, said in September his company would invest more than $100 billion over the next decade, with 70% earmarked for the energy transition space.

The company plans to file a draft prospectus before Dec. 31 and raise the funds before March 31, but it will depend on market conditions, the person added.