Big move by Gautam Adani as this Adani company likely to earn Rs 109159505000 by selling shares

Billionaire Gautam Adani’s flagship company is set to launch its share sale as soon as next week, according to sources familiar with the matter, marking its return to the public equity markets following a damaging short-seller report in 2023 that disrupted a previous plan.

Adani Enterprises Ltd. aims to raise approximately $1.3 billion through a qualified institutional placement, with the process expected to commence in the week starting October 7, according to these sources, who requested anonymity as the information has not been made public. The terms of the sale may include a greenshoe option, which the board is likely to finalize by the end of this week. There is strong interest from numerous domestic institutional investors regarding this equity issue, another source indicated.

In May, Adani Enterprises received board approval to raise up to Rs 16,600 crore ($2 billion) through various methods, including institutional share sales.

An Adani Group representative did not provide any immediate comments. Discussions are ongoing, and specifics of the share sale, including size and timing, may be subject to change, the sources noted. The fundraising effort coincides with an investor surge that has made India the most active IPO market. It also represents another significant milestone for the media-to-mining conglomerate, which was shaken by allegations of widespread corporate fraud made by US short-seller Hindenburg Research in January 2023. Despite the Adani Group's denial of these allegations, the stock decline wiped out over $150 billion from the conglomerate's market value at one point, leading to the cancellation of a $2.5 billion share sale in February last year.

The conglomerate has since resumed its growth trajectory, acquiring a port in Africa, launching a $10 billion chip plant, and purchasing cement manufacturers in India. A successful share sale by Adani Enterprises—the group’s incubator for new ventures—would represent a significant vote of confidence from investors for the billionaire. ICICI Securities Ltd., Jefferies Financial Group Inc., and SBI Capital Markets Ltd. are assisting Adani Enterprises with the share sale, as reported by Bloomberg News in August.

Shares of Adani Enterprises have risen nearly 12% this year, underperforming the benchmark NSE Nifty 50’s 18.7% increase, according to data compiled by Bloomberg. The stock remains about 7% below its value when the Hindenburg report was released.

This transaction would follow Adani Energy Solutions Ltd.’s $1 billion share sale to institutional investors in August.

Additionally, the group, led by Asia’s second-richest person, along with its joint-venture partner Wilmar International Ltd., is planning to sell a 13% stake in consumer goods producer Adani Wilmar Ltd. to reduce the founders’ shareholding and comply with India’s regulatory requirements.