Adani Enterprises board approves rights issue of Rs 25,000 crore to eligible shareholders

Adani Enterprises, the flagship company of the Adani Group, on Tuesday, November 4, announced that its board has agreed to raise up to Rs 25,000 crore through a rights issue of partially paid shares of face value of Re 1 each. The offer will be made to eligible equity shareholders as of the record date, which will be determined and announced later, a regulatory filing said.The company said the rights issue will be conducted in accordance with applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and will remain subject to necessary statutory and regulatory approvals.

In view of the implementation of the rights issue, the board has authorized a Rights Issue Committee to finalize and approve specific details such as the issue price, rights ratio, record date, time and payment terms. These details will be announced to the stock exchanges in due course, the company added.

Adani Enterprises on Tuesday reported an 84% rise in consolidated net profit in the second quarter to Rs 3,199 crore, compared to Rs 1,742 crore in the same period a year ago. The profit after tax (PAT) is attributable to the owners of the company.

The company’s revenue from operations for the quarter stood at Rs 21,249 crore, down 6% from Rs 22,608 crore in the corresponding quarter of the previous fiscal. In its filing with the stock exchanges on Tuesday, the company reported exceptional profits of Rs 3,583.28 crore in the quarter under review.

Shares of Adani Enterprises were trading at Rs 2,414, down 2.15% from the last close on the NSE around 3 pm. Adani Enterprises’ share price has fallen more than 16% in the past year.(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)