Gautam Adani's Adani Enterprises Ltd Successfully Raises Rs 700 Crore in Funding through Allotment of 70,000 Unrated NCDs on Private Placement Basis"
In a strategic financial move, Adani Enterprises Ltd, controlled by Gautam Adani, has secured Rs 700 crore by allotting 70,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) with a face value of Rs 1,00,000 each on a private placement basis. This announcement was made through an exchange filing on Wednesday.
"The Adani Group's flagship company had previously raised Rs 1,250 crore in July through a private placement of non-convertible debentures (NCDs). Non-convertible debentures are long-term financial instruments that companies use to raise capital from investors, with no collateral backing, relying on the issuer's creditworthiness and reputation.
"The company conveyed that it raised Rs 1,250 crore by issuing 125,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) with a face value of Rs 100,000 each on a private placement basis in July."
Last week, International Holding Co (IHC), based in Abu Dhabi, announced an increase in its stake in Adani Enterprises to over 5 percent. IHC expressed confidence in Adani Enterprises' incubation model, emphasizing its potential in areas like Airports, Data Centers, Green Hydrogen, and other sectors crucial for India's growth. IHC stated its commitment to exploring unique investment opportunities in India to maximize returns for stakeholders in a press release.
In September, IHC, through a stock exchange notice, announced that its subsidiaries had entered into an agreement to 'divest' their foreign direct investment in Adani Green Energy Ltd and Adani Energy Solutions (formerly Adani Transmission).
Despite allegations of stock manipulation and substantial debt accumulation made by the US short-seller Hindenburg Research in January, foreign investors like IHC and GQG Partners have shown interest in Adani companies.
Financial Times and OCCRP have also revealed that millions were invested in certain publicly traded Adani Group stocks through 'opaque' Mauritius funds, which concealed the involvement of purported business partners of the Adani family.
On August 31, 2023, in cooperation with the Organized Crime and Corruption Reporting Project (OCCRP), a publication released an article alleging that two individuals supposedly associated with Vinod Adani, brother of Gautam Adani, were utilizing Bermuda's Global Opportunities Fund for the purpose of "accumulating and trading substantial positions in Adani Group shares." These two individuals were identified as Nasser Ali Shaban Ahli from the United Arab Emirates and Chang Chung-Ling from Taiwan.
Earlier this week, the Adani Group expressed strong disapproval of the 'renewed effort' by the Financial Times and its collaborators to 'reiterate old and unsubstantiated claims with the intention of damaging the reputation and credibility of the Adani Group.'
The conglomerate criticized the financial newspaper for persisting with its unrelenting campaign to sully the Adani Group's reputation and 'promote vested interests while appearing to serve the public interest.'
The ports-to-energy conglomerate asserted, "This forms a part of their prolonged campaign to promote vested interests while purporting to serve the public interest.
