Adani Energy Solutions to Launch $600 Million Share Sale This Week, Says Report

Adani Group's power transmission arm, Adani Energy Solutions, is reportedly planning to initiate a share sale this week to raise over $600 million, as per a report by Reuters.

This upcoming sale of existing shares marks Adani Group's first attempt to raise funds from the equity markets after a $2.5 billion share sale was canceled in February last year.

The cancellation came after the US-based short seller, Hindenburg Research, accused the Adani-led group of misusing offshore tax havens and manipulating stock prices.

At 10:25 am, the shares of the power transmission company were trading at Rs 1,059 price level, up by 0.70 per cent on the National Stock Exchange.

While the conglomerate denied all the allegations made by Hindenburg, the market value of its group companies collectively dropped by more than $100 billion before recovering in late 2023.

As per sources cited in the report, the group's power transmission unit is likely to raise funds through a Qualified Institutional Placement (QIP), commonly used by listed Indian companies to secure funds from large institutions.

Another source cited in the report said that foreign investors who have not previously invested in India are expected to participate in the offering.

Adani Group companies have secured over $670 million through listed rupee bonds and a dollar bond, since the Hindenburg report was released last year, during January.

The upcoming share sale by Adani Energy is part of a larger fundraising of 125 billion rupees ($1.50 billion) that was approved in May. Meanwhile, other group companies have received board approvals to raise funds from the market.

On an annual basis, the shares of the company have delivered a return of more than 28 per cent on the National Stock Exchange.