Adani Group sign at the company’s gas station in Ahmedabad, India, on Wednesday, February 1, 2023.
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Two Adani group companies including the flagship of the Indian conglomerate announced plans on Saturday to raise up to $2.57 billion from the market, months after a seller report It damages investor confidence and causes stock prices to drop.
India’s Adani Transmission said its board approved a plan to raise up to 85 billion rupees ($1 billion) from the stock market. Adani Enterprise said in a filing to exchanges that its board has approved a plan to raise up to 125 billion Indian rupees ($1.53 billion) through similar methods.
The January report by US-based short-seller Hindenburg Group dented investor confidence and sent the group’s share price lower.
Adani has denied all allegations even as India’s market regulator is investigating Hindenburg’s allegations as well as related party dealings by Adani group as directed by Supreme Court.
Adani Transmission and Adani Enterprise, the flagship company of billionaire Gautam Adani, said in separate statements that they intend to raise capital through the sale of equity shares through qualified institutional placements or other means other permitted manner.
Adani Green Energy Ltd, which was also expected to announce similar funding plans, on Friday rescheduled its board meeting to May 24.
Adani Enterprise’s plan to sell $2.5 billion worth of shares fell through after reports of harsh short sellers.
