Adani Enterprises to return to equity market with $1 bln share sale, sources say

ICICI Securities

07/08/2024 15:04

By Bhakti Tambe, Jayshree  P Upadhyay and Dhwani Pandya
       MUMBAI, Aug 7 (Reuters) - Adani Enterprises Ltd
 ADEL.NS  is likely to launch a $1 billion share sale by
mid-September, three sources with direct knowledge of the matter
told Reuters, in the latest attempt by Indian billionaire Gautam
Adani to restore his empire's fortunes. 
    The share sale will be the second by an Adani group company
this year after one from its power transmission unit last week. 
    The offering of existing shares will mark Adani Enterprises'
return to equity markets after the flagship company scrapped a
$2.5 billion share sale in February last year, after U.S.-based
short-seller Hindenburg Research accused the Adani group of
improper use of offshore tax havens and stock manipulation.
    Adani has denied any wrongdoing. 
    An Adani group spokesperson has not responded to an email
request for comment.
    "The bankers to the deal have been briefed by Adani
officials and are targeting to launch the share sale by late
August or early September. Right now $1 billion is being worked
upon, though the bankers have approval for a higher fund raise,"
said the first of the three sources, who declined to be named as
the plans are private.
    The board approved a potential fundraising of up to $2
billion in May. 
    The funds will be raised through a so-called Qualified
Institutional Placement (QIP), a process used by listed Indian
companies to raise funds from large institutions. The company
will soon reach out to investors, the sources said.
    The Adani group has hired ICICI Securities, SBI Capital
Markets and Jefferies to facilitate the share sale. The banks
have not responded to requests for comment. 
    "Adani Enterprises wants to attract certain U.S. investors
that are focused on infrastructure but have never looked at
India," said the second source. 
    Adani Energy Solutions QIP last week got bids from
utility-focused U.S. investors, sovereign wealth funds from the
United Arab Emirates and Qatar, and Indian mutual funds. The
issue received bids for six times as many shares as were on
offer. 
    "After the success of Adani Energy QIP, Adani has the
confidence that there will be strong demand for the group's
flagship company as well," said the third source.   
    Adani Enterprises also plans to launch its first-ever public
issue of bonds in the coming weeks to raise up to 6 billion
rupees ($71 million). It decided not to proceed with a debut
retail bond offering of up to 10 billion rupees last year. 
    ($1 = 83.9222 Indian rupees)

 (Reporting by Bhakti Tambe, Jayshree P Upadhyay, Dhwani Pandya
in Mumbai; Editing by Mark Potter)
 ((Jayshree.Pyasi@thomsonreuters.com; 9920092491; Reuters
Messaging: Twitter: @jaysh88))