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Asia’s richest man Gautam Adani has taken a break from his seemingly insatiable fortune
growth
growth
Business standard
Airports, roads, ports and now 5G: the expansion of the Adani group continues
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in the past week, but it still made news.
The flagship of his sprawling eponymous empire has launched India’s largest fundraising through an additional public offering (FPO), a process by which companies already listed on the stock exchange issue shares to the public.
The Rs 20,000-crore ($2.4 billion) IPO plan announced by Adani Enterprises Ltd (AEL) on November 25 is a timely, strategic move to monetize the stock’s shocking rally over the past two-and-a-half years . Expected move (like Ken there was
written
written
Ken
Gautam Adani’s oldest company is not his most valuable. But it determines his future
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in September).
AEL is the incubator that houses most of the group’s new businesses, from airports and metals to petrochemicals and media. But it lacks major cash flow and relies heavily on debt to fund its dizzying array of new ventures through equity, loans and guarantees.
To continue to be a generous parent and, more importantly, to keep its leverage under control, AEL needs to raise more equity capital.
Do it now, at a time and at a price of your choice.
The company’s shares have risen a staggering 30 times since the start of the pandemic in 2020. Its market capitalization now stands at Rs 4,45,000 crore ($54 billion), earning it a place in the benchmark Nifty 50 index. Share valuations are in the stratosphere. From the company’s perspective, this is a great time to sell.
It will also help AEL make a virtue – to expand its investor base – out of the need to raise funds.
In April 2021 Ken
reported
reported
Ken
Adani Total Gas pipeline hype
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on the peculiar shareholding patterns of Adani group companies, noting that several share common foreign portfolio investors (FPIs). And strangely, several of them had minor investments in companies outside of Adani. As a result, the percentage of shares effectively available for trading by the public in Adani shares was very low. To Ken story started a
debate
debate
NDTV
Adani CFO on ownership disputes, investors
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in the mainstream media.