Two Indian companies in the Adani Group are seeking to raise a combined total of $2.6 billion through share sales. This comes after a severe market value loss triggered by a negative short-seller report. * The group's flagship firm, Adani Enterprises, intends to raise $1.6 billion in a secondary share sale. Simultaneously, power generation company Adani Transmission is planning a $1 billion deal. Both proposals require shareholder approval.
Previously, Adani Enterprises had to withdraw a plan to raise $2.5 billion from investors after Hindenburg Research, a US-based short-seller, accused the conglomerate of market manipulation. This report resulted in significant losses for the companies within the Adani Group, which denied the allegations.
Following the market turbulence, the group's founder, Gautam Adani, and other executives took steps to reassure investors, including announcing the early repayment of around $2.65 billion of debt backed by Adani shares. They also secured a $1.9 billion investment from GQG Partners, a US-based asset manager.
The accusations triggered political and legal repercussions, with India's opposition parties demanding an investigation and the Supreme Court initiating a probe into the market unrest. Both Adani Enterprises and Adani Transmission are planning on raising funds through qualified institutional placements, limiting sales to domestic investors. Adani Green Energy, another group firm, is contemplating a similar plan but has delayed the decision until later this month.
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* Past performance is no guarantee of future results
