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Journalism of Courage
Adani group’s flagship firm Adani Enterprises on Wednesday said that the company will hold a board meeting to consider and approve a proposal to raise funds by issuing equity shares. This comes in under four months after short-seller Hindenburg Research published a report against the conglomerate that led to a massive stock rout in the group firms.
Adani Enterprises, in a filing with stock exchanges, said that a meeting of the board of directors will be held on Saturday, May 13, “to consider and approve the proposal of raising of funds by way of issuance equity shares or any other eligible securities (“Securities”) through permissible modes.”
The company did not disclose how much money it was considering to raise.
Adani Enterprises shares today jumped 5.07 per cent and closed at Rs 1,988 on the NSE.
This is the first time since Hindenburg’s report that the Adani group’s firm will look to raise funds from the equity market. Before this, the Adani group raised around $1.9 billion by selling shares in the group to US investment firm GQG Partners in March.
The report by the US-based short seller, which was published on January 24, alleged that the Adani group was involved in ‘brazen stock market manipulation’ and accounting fraud over the last decade.
The report has led to a wipeout of over $100 billion from the Adani group’s market valuation. While the shares of Adani Group’s companies have recovered some of their losses since February, Adani Enterprises is still trading below half of its peak level last year.
