Adani courts funds in Middle East

Adani Enterprises to raise $2.5b by selling new shares

Adani Enterprises Ltd. seeks to raise 200 billion rupees ($2.5 billion) by selling new shares as billionaire Gautam Adani’s flagship firm looks to increase its free float and improve leverage ratios.

The board of Ahmedabadbased firm, helmed by Asia’s richest person, approved a further public offer of equity shares, according to an exchange filing yesterday. Asia’s richest person, Gautam Adani, plans to raise at least $5 billion in equity aims to shut down two of the most frequent criticisms levelled against the Indian tycoon’s swelling empire: high debt ratios and a limited investor base.

Fundraising campaign

Adani is embarking on a fundraising campaign that will likely include a local share sale as well as buy-in from large investment funds. An equity injection of this size is expected to help the conglomerate deleverage and Bloomberg Intelligence sees a successful equity raise across the group supporting the companies’ dollar bonds.

Adani executives are courting global sovereign and pension funds, including Mubadala Investment Co., Abu Dhabi Investment Authority and the Canada Pension Plan Investment Board, Bloomberg reported Wednesday. The total fundraising size could be as high as $10 billion, according to people familiar with Adani’s thinking.

The equity plans come as the 60-year-old seeks to reinvent himself on the global stage. Despite adding more billions to his wealth than any other tycoon this year, Adani has faced many questions.

$10b

Estimated total fundraising size by Adani Enterprises