Adani Enterprises in talks with Gulf-based sovereign funds to raise $2 billion through QIP: Report

Billionaire Gautam Adani's Adani Enterprises is in talks with institutional investors, including Abu Dhabi Investment Authority, Qatar Investment Authority, and Rajiv Jain’s GQG to raise $2 billion through a qualified institutional placement (QIP), Moneycontrol reported on Wednesday, October 9, citing people aware of the development.

The potential institutional share sale is expected to be launched before the end of October, according to the sources cited by the news portal. 

Adani Enterprises shares ended 0.42 per cent lower at ₹3,152.90 on Wednesday, compared to the previous close of ₹3,166.15. 

“Adani Enterprises is in talks with a dozen institutional investors, including ADIA, QIA and GQG, which have backed Adani group companies in the recent past. The QIP will be launched once they have firm commitments from these institutional investors,” said a person aware of the development, as per the report.

The news portal's emails to the Adani Group remained unanswered, while the Abu Dhabi Investment Authority refused to comment on the development. According to the report, queries sent to the Qatar Investment Authority and GQG also remained unanswered.

Fundraising

The funds raised through the QIP issue are planned to be used for the company's capital expenditure and to repay some debt of the company and its subsidiaries, according to the report.

On May 28, the Adani Enterprises board approved plans to raise nearly ₹16,600 crore through a QIP issue. Adani conglomerate's Adani Energy Solutions also raised nearly $1 billion through QIP, subscribed almost six times, according to the report.

GQG, Blackrock, Nomura, ADIA, QIA and a bunch of domestic mutual funds, such as SBI MF, HDFC MF and Tata MF, participated in the QIP issue, according to the news portal.

The news portal reported on September 5 that Adani Group plans to raise between ₹30,000 crore and ₹40,000 crore from retail investors through a non-convertible debentures (NCD) issue over the next three to four years to diversify funding sources and mitigate risk.

The company's total debt increased to ₹50,124 crore in the financial year 2024, compared to ₹38,320 crore in the previous year. Adani Enterprises' long-term borrowing increased to ₹43,718 crore in the financial year 2024, compared to its levels of ₹32,590 crore in the previous year.

The external debt was ₹29,511 crore in FY 2024, up from ₹22,237 crore in the previous year showing increased leverage and improved liquidity, as per the report.