Adani Enterprises on Friday said that the company's board of directors have approved fund raising amounting to ₹20,000 crore through a follow-on public offering (FPO).
"We wish to inform that the board of directors of the Company (the “Board"), at its meeting held today, i.e. 25 November 2022, has approved raising of funds by way of a further public offering through a fresh issue of Equity Shares by the Company aggregating up to ₹20,000 crore," the company said in its filing.
A follow-on public offer or FPO is a way by which listed companies issue shares to the public to diversify their equity shareholding.
The share offering would increase the company's public float from the current 27.4%.
The conglomerate helmed by billionaire Gautam Adani, has laid out a mega investment plan of up to $70 billion in the next 10 years to build and acquire renewable assets.
Adani Enterprises' net profit rose to ₹461 crore in the September quarter of the fiscal year 2022-23 (Q2 FY23). The net profit has climbed by 217 percent year-on-year (YoY), as it stood at ₹212 crore in the corresponding quarter of last year.
The revenue from operations stood at ₹38,175 crore, in Q2 FY23, which is nearly triple as compared to ₹13,218 crore clocked in the year-ago period.
The company's EBITDA came in at ₹1,869 crore in the September quarter, as against ₹883 crore recorded in the second quarter of the last fiscal year.
Shares in Adani Enterprises have risen about 136% in the year to date. Soon after the announcement, the Adani Enterprises stock was trading at ₹3,886, about a percent lower than the previous closing.