Adani is embarking on a new investment drive to raise the companys credibility and quell investors concerns . The board of Adani Enterprises Ltd.
After four years of eyebrow-raising gains, some Adani Group shares soared more than 2,000%, Asia's richest person is planning on a fundraising spree to help his company's deleverage and financial stability, according to Bloomberg Intelligence.Adani is aiming to mobilize the naysayers, according to Sanjiv Bhasin, Director of Mumbai-based brokerage IIFL Securities Ltd. Adani is embarking on a new investment drive to raise the company's credibility and quell investors' concerns.There are also questions regarding the sort of buyers he will be able to attract and how they will be persuaded to buy at the astronomical rates at which his units trade.The Adani Group declined to respond to emails from Bloomberg.Serious questions Adani executives are courting international sovereign and pension funds, including Mubadala Investment Co., Abu Dhabi Investment Authority, and the Canada Pension Plan Investment Board, according to sources familiar with the company's behavior.Since taking more billions to his wealth this year, Adani has failed to dismiss the groups' elevated leverage.But it's harder, said Vikas Pershad, a fund manager at M&G Investments (Singapore) Pte.
On Friday, the board of Adani Enterprises Ltd. will meet to discuss funding raising options.According to data collected by Bloomberg, Adani Enterprises is worth over 160 times its one-year forward earnings.Reliance Industries Ltd., India's largest firm by market value, is valued at about 21 times, so investors should be wary of taking new positions.Whatever the debt, Adani Enterprises is expected to be tested in September, according to Alice Wang, a London portfolio manager, who believes that adding more strategic or passive investors would not increase liquidity.However, this will not only solve their problems without lowering the share price, but the jury is still out for the equity holders, including Adani, who earned more than$27 billion in 2020 by selling stakes in Reliance Industries units to global investors, likes of Meta Platforms Inc. and Googles parent, Alphabet Inc.Anish Teli, managing partner atQED Capital Advisors LLP in Mumbai, said that the proposed share sale would be the first of many as the conglomer The organization is involved in a variety of industries that are cash intensive and have long gestation periods, so it may need more fundraises soon.