Adani Enterprises to Raise ₹25,000 Crore Via Rights Issue Amid Mixed Q2 Results

Adani Enterprises, the flagship company of the Adani Group, has announced a significant capital raise plan of ₹25,000 crore through a rights issue of partly paid-up equity shares. This move aims to bolster the company's financial resources. The announcement was made alongside its financial results for the September quarter. The company reported an impressive 84% year-on-year increase in net profit, reaching ₹3,199 crore. This surge was primarily driven by a one-time gain of ₹3,583 crore derived from the Adani Wilmar Offer For Sale (OFS). However, the financial performance also showed some weaknesses. Revenue for the quarter decreased by 6% compared to the previous year, amounting to ₹21,248.5 crore. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) fell by 23% to ₹3,407 crore, and profit margins contracted by 370 basis points to 16%. Following these announcements, shares of Adani Enterprises experienced a decline, trading down 2.7% at ₹2,401.4. The stock is down 6% so far in 2025. The board has approved the formation of a rights issue committee, which will finalize details like the issue price, entitlement ratio, record date, and payment terms. Impact: The rights issue could dilute existing shareholders' equity but also provide crucial capital for expansion or debt reduction, potentially impacting future earnings. Mixed results may affect investor sentiment in the short term. Rating: 7/10. Difficult Terms: * Rights Issue: An offer to existing shareholders to buy additional shares in proportion to their current holdings, usually at a discount. * Partly Paid-up Equity Shares: Shares for which the full nominal value has not yet been paid by the shareholder. The remaining amount is payable in installments as decided by the company. * Offer For Sale (OFS): A method where existing shareholders sell their shares to the public, usually to meet minimum public shareholding norms or to raise capital without issuing new shares. * EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation is a measure of a company's operating performance.