India’s Adani Enterprises says it will use proceeds from a 200-billion-rupee ($2.46 billion) a public sharing offering that starts next week for capital expenditure and to pay off debts.
The company, run by local billionaire Gautam Adani, will use 108.7 billion rupees from India’s biggest Follow-on Public Offering (FPO) to fund green hydrogen projects, airports facilities and greenfield expressways, the group said in its latest prospectus.
It will also use 41.65 billion rupees to repay the borrowings of three of its units – Adani Airport Holdings, Adani Road Transport and Mundra Solar.
Adani Enterprises’ prospectus did not specify a price band for the follow-on sale of shares that starts on January 27 and ends on January 31.
The proposed fund raising comes as the ports-to-energy conglomerate aggressively expands into sectors such as cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.
The group has made acquisitions worth $13.8 billion in 2022, as per Dealogic data, its highest ever in a year and more than double the previous year.
Adani Enterprises stock jumped nearly 130% in 2022, and closed down 1.2% on Wednesday.
- Reuters with additional editing by Jim Pollard