Adani Energy Solutions to Raise Over $600 Million

Gautam Adani-led Adani Energy Solutions is set to launch a significant share sale this week, aiming to raise over $600 million, according to a report by Reuters. This marks the Adani Group’s first equity market fundraising effort since a $2.5 billion share sale was canceled in February 2023.

The cancellation followed allegations by US-based short-seller Hindenburg Research, which accused the group of stock price manipulation and other irregularities.

Background: Hindenburg Report and Its Impact on Adani Energy:

In January 2023, Hindenburg Research published a report accusing the Adani Group of improperly using offshore tax havens and stock manipulation.

The report led to a significant drop in the group’s share value, with losses exceeding $100 billion before a recovery began in late 2023. Both Adani Group and its chairman, Gautam Adani, have denied all allegations made in the report.

Details of the Upcoming Share Sale:

Adani Energy Solutions plans to raise the funds through a Qualified Institutional Placement (QIP), targeting institutional investors.

The QIP is expected to include at least three foreign investors who have not previously invested in India. SBI Capital Markets, Jefferies, and ICICI Securities are the companies advising Adani on the share sale.

Previous Fundraising Efforts by Adani Energy:

Since the release of the Hindenburg report, Adani Group companies have raised more than $670 million through listed rupee bonds and one-dollar bonds.

This upcoming share sale by Adani Energy Solutions is a strategic move to further bolster the group’s financial position and confidence among investors following the controversy earlier in the year.

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