The Adani Enterprises Ltd stock surged 1.02% today after the Adani group's flagship company raised ₹700 crore by allotting 70,000 non-convertible debentures (NCD).
"The company has raised ₹700 crores today i.e. 11th October, 2023 by allotment of 70,000 Secured, Unrated, Unlisted, Redeemable, Non-Convertible Debentures (“NCDs”) of the face value of ₹1,00,000/- each on private placement basis," Adani group says via a stock exchange filing.
The stock opened a gap up at ₹2,496.05 against the previous session closing of ₹2,488.05 and surged 1.1% to an intra-day high of ₹2,519.10 on the BSE. The Adani Enterprises stock is trading 40% down as compared to the 52-week high of ₹4,189.55 achieved on December 21, 2022. At the current share price, Adani Enterprises' m-cap stands at ₹2,86,430.98 crore.
The stock has surged 0.30% in the past week; fell 0.88% in the past month; but grew 36% in the past six months. In the year-to-date and one-year periods, the stock has fallen 34.59% and 22.01%, respectively.
Adani Enterprises had raised ₹1,250 crore via a private placement of non-convertible debentures (NCD) in July 2023 as well. The company had issued 25,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) of a face value of ₹100,000 each on a private placement basis to raise the amount. In the same month, Adani Enterprises' subsidiary Adani New Industries Limited (ANIL) ecosystem also raised a trade finance facility of $394mn (INR 3,231 cr) from Barclays PLC and Deutsche Bank AG for securing working capital requirements of its integrated solar module manufacturing facility.
The development comes close on the heels of Abu Dhabi-based conglomerate International Holding Company(IHC) raising its stake in Adani Enterprises to above 5% on October 4, 2023. Adani Enterprises said IHC’s increased stake was a "ringing endorsement" of the company's "robust capex plans, governance, and transparency".
The net profit of Adani Enterprises rose 44% year-on-year to ₹676 crore for the quarter ended June compared with ₹469 in the year-ago period, while its revenue dropped 38% year-on-year to ₹25,438 crore in the first quarter on YoY basis. Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 47% year-on-year to ₹2,896 crore on strong operational growth.
AEL had to call off the ₹20,000-crore follow-on public offering (FPO) earlier this year, which was touted to be the biggest in India's history. On January 24, when the Hindenburg Research report came out, accusing it of "financial fraud and stock manipulation", which it denied, the market capitalisation of Adani Group was ₹19.18 lakh crore. It came down to about ₹10 lakh crore, following which AEL had to call off the FPO.
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