Adani Enterprises plans to raise $2 bn via QIP; in talks with Gulf sovereign funds, GQG

Shares of Adani Enterprises Limited, the flagship firm of billionaire Gautam Adani were trading on a flat note on Wednesday amid a report which said the company was geariong up for a $2-billion qualified institutional placement (QIP). 

The bunch of institutional investors with which the Adani Group firm was holding talks include Gulf-based sovereign wealth funds such as Abu Dhabi Investment Authority and Qatar Investment Authority, as well as investors such as Rajiv Jain’s GQG, according to a report in Moneycontrol.

The proposed QIP of shares share was likely to be launched before the end of October, the report said. 

The company plans to use funds collected from the proposed QIP for capital expenditure as well as to repay some of the debt of the company and its subsidiaries.

Adani Enterprises stock was trading 0.45% lower at Rs 3152 on Wednesday. Market cap of the firm stood at Rs 3.59 lakh crore on BSE. Total 0.45 lakh shares changed hands amounting to a turnover of Rs 14.24 crore on BSE.      

Adani Enterprises stock has a one-year beta of 2, indicating very high volatility during the period.  

In terms of technicals, the relative strength index (RSI) of Adani Enterprises stands at 58.6, signaling it's trading neither in the overbought nor in the oversold zone. The stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.       

The stock has risen 8.10 per cent this year and gained 29.15% in a year.     

In September this year, the Adani Group's flagship firm raised around Rs 800 crore via the debenture sale. The firm's maiden NCD issue opened on September 4, 2024 and ended on September 6, 2024.  Earlier it was set to close on September 17.

The NCD issue involved public issue of up to 80,00,000 secured, rated, listed, redeemable, non–convertible debentures (NCDs) of face value of Rs 1,000 each, amounting to Rs 400 crore. There was an additional an option to retain over-subscription of up to Rs 400 crore aggregating up to Rs 800 crore.