Adani Enterprises Clears Record ₹249.3 Billion Rights Issue to Cut Debt, Fund Growth Push

Adani Enterprises Ltd. has cleared plans for its biggest-ever fundraising through a ₹249.3 billion rights issue, as the company looks to pare debt and fuel growth across its airport, roads, and new energy ventures.

The board on Tuesday approved the issue at ₹1,800 per share, offering shareholders three rights equity shares for every 25 fully paid-up shares held as of November 17, according to a stock exchange filing.

The move follows last week’s announcement of a ₹250 billion capital-raising plan aimed at strengthening the company’s balance sheet ahead of its next investment phase.

As of September 30, shareholder loans on the company’s books stood at ₹229.67 billion. Adani Enterprises’ Chief Financial Officer Robbie Singh said these loans will effectively convert into equity, as promoters intend to subscribe to their rights entitlements. Non-promoter participation will bring in additional growth capital, mainly for the airports business and partially for roads and Adani New Industries.

“This will result in a significant reduction in gross debt and improve our capacity to grow faster,” Singh told analysts during the September quarter earnings call. The company’s gross debt rose to ₹920.65 billion as of September 30, compared with ₹762.36 billion at the end of March.

Singh said the proceeds will largely cover airport funding needs over the next 12 months, along with smaller requirements in the roads segment.

This marks the first major equity raise by Adani Enterprises since February 2023, when the group scrapped its ₹200 billion follow-on public offer after facing allegations from US short-seller Hindenburg Research.