Adani Enterprises Rights Issue to Open on November 25; Company to Raise ₹24,930 Crore

Ahmedabad, November 21: Adani Enterprises’ rights issue will open for subscription on November 25, and will close on December 10. A rights issue is a corporate action carried out by companies. It allows its existing shareholders to buy new shares of the company to raise capital. The shares are generally offered by the company at a lower price than the last traded market price. Under the rights issue of Adani Enterprises, the company is planning to raise ₹24,930 crore, making it one of the biggest rights issues.

Adani Enterprises Limited (NSE: ADANIENT, BSE: 512599) is the flagship and publicly listed holding company of the Adani Group. It functions primarily as the group’s business incubator, establishing new ventures in critical infrastructure and primary industry sectors, nurturing them, and then spinning them off into independently listed entities (such as Adani Ports, Adani Power, and Adani Green Energy). The company was established in 1993, and is headquartered in Ahmedabad, Gujarat.

Adani Enterprises Rights Issue Structure and Key Terms

Under the right issue, the company will issue 13,85,01,687 partly paid-up equity shares at an issue price of ₹1,800 per share. The ₹1,800 issue price is well below the company’s current stock price of ₹2,428.80. On application, shareholders will pay ₹900 upfront, with the company having the option to ask for the remaining ₹900 through two future calls.

The company has set November 17 as the record date for the rights issue. A record date is the date before which investors must hold or buy the shares of the company. The company looks at its shareholders’ list on the record date to determine eligible shareholders for the rights entitlement. Shareholders holding the shares of Adani Enterprises on the record date will be eligible to receive 3 rights equity shares for every 25 fully paid-up equity shares held.

The company has announced that it will use the proceeds from the right issue for repayment and pre-payment of certain borrowings of Adani Enterprises and subsidiary Adani Airport Holdings Ltd. The remaining amount will be used for general corporate purposes.

Shares Fall 0.71% at ₹2,428.80

As of 1:45 PM, Adani Enterprises share price was down by 0.71%, or 17.30 points, and was trading at ₹2,428.80. Until now, the shares have traded within a range of ₹2,456.20 and ₹2,423. The traded volume stood at 3.64 lakh shares, with the company’s market cap at ₹3,16,203 crore.

Investor Takeaway

Adani Enterprises has announced a major fundraising of ₹24,930 crore through a rights issue. It provides a way for investors to own more shares of a company at a discounted price. Furthermore, the fundraise will result in lowering the debt of its subsidiary, further strengthening the company’s business structure. However, for now, the shares of the company are witnessing negative investor demand.

REF: https://www.bseindia.com/downloads/ipo/Letter of Offer_191120251924.pdf

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