Adani Enterprises to Raise ₹25,000 Crore via Rights Issue to Fuel Infrastructure Expansion

Move marks Adani Group’s biggest capital raise since 2023; aims to strengthen balance sheet and accelerate growth across airports, roads, data centers, and green energy projects

New Delhi (Economy India): Billionaire Gautam Adani’s flagship company, Adani Enterprises Ltd (AEL), has announced plans to raise ₹25,000 crore through a rights issue of partly paid-up equity shares, marking one of the largest capital-raising efforts by an Indian conglomerate in recent years.

In a filing to the stock exchanges, the company said its board has approved the issuance of equity shares of face value ₹1 each, aggregating up to ₹25,000 crore, to eligible equity shareholders. The move reflects Adani Group’s renewed confidence and strong appetite for expansion following a year of stabilization and recovery across its listed companies.

“The Board of Directors approved the issuance of partly paid-up equity shares of face value of Re 1 each for an amount not exceeding ₹25,000 crore by way of a rights issue,” the company stated in its regulatory filing.

Largest Fundraise Since 2023 Market Volatility

This proposed rights issue will be the largest capital raise by the Adani Group since the January 2023 market volatility triggered by the Hindenburg Research report.
Over the past year, the group has focused on deleveraging, improving cash flows, and restoring investor confidence — a strategy that has been visibly successful.

AEL’s move signals a renewed growth phase for the conglomerate, aligning with its ambitious plans across infrastructure, green hydrogen, data centers, airports, and logistics sectors.

Strategic Use of Funds

According to analysts, the proceeds from the rights issue will be primarily used to:

• Fund ongoing and upcoming infrastructure projects, including airports, expressways, and ports.
• Invest in Adani New Industries Ltd (ANIL) for the development of green hydrogen and renewable energy ecosystems.
• Support expansion in data centers, digital services, and industrial manufacturing.
• Strengthen the company’s balance sheet and enhance financial flexibility for future investments.

Adani Enterprises is the incubator for the group’s new and high-growth businesses, having previously nurtured entities like Adani Ports, Adani Power, Adani Transmission, and Adani Green Energy before their eventual listing.

“This rights issue demonstrates the Group’s long-term commitment to disciplined growth and self-funded expansion,” said a senior company executive familiar with the development.

Why Rights Issue — and Not a Fresh FPO?

The choice of a rights issue over a fresh follow-on public offer (FPO) is seen as a strategic one.
A rights issue allows existing shareholders to buy additional shares at a discounted price, ensuring greater participation from long-term investors and minimizing dilution of promoter shareholding.

This also reflects the Group’s effort to reward existing investors who stood by the company during the challenging market phase of 2023.

“By opting for a rights issue, Adani Enterprises ensures both inclusivity and stability — inviting participation from existing shareholders while signaling confidence to the markets,” said Ramesh Menon, Managing Director, Axis Securities.

Investor Sentiment and Market Response

Following the announcement, Adani Enterprises’ shares saw mild upward movement on Tuesday, reflecting investor optimism about the company’s growth outlook and capital discipline.

Market experts view the decision as a positive signal — not only because it strengthens liquidity, but also because it underscores the Group’s commitment to maintaining low leverage ratios and improving transparency in capital allocation.

“The ₹25,000 crore rights issue could act as a catalyst for rerating Adani stocks,” said Anuj Kapoor, Senior Research Analyst at ICICI Securities.
“It gives the group the capital runway it needs for expansion in high-growth sectors like renewables, logistics, and digital infrastructure.”

Broader Growth Outlook

Adani Enterprises currently leads several strategic infrastructure projects critical to India’s economic growth vision, including:

• Navi Mumbai International Airport, set to open by 2026.
• Adani Green Hydrogen Ecosystem, targeting 1 million tonnes of annual production capacity by 2030.
• Adani Data Centers, being developed in partnership with global technology firms.
• Adani Roads and Expressways, with a strong pipeline of projects across India.

The capital raised will help accelerate project completion timelines, enhance capital efficiency, and sustain the Group’s trajectory toward becoming a carbon-neutral infrastructure conglomerate.

Analyst Commentary

Financial experts say the rights issue reaffirms Adani Group’s resilience and long-term strategic clarity.
After successfully repaying over $3 billion in loans and improving debt ratios in FY2024–25, Adani Enterprises is now poised for a fresh growth phase fueled by internal capital generation and shareholder participation.

“The Adani Group has demonstrated strong recovery through disciplined capital management. This rights issue is a natural extension of that approach,” noted Sanjay Chakraborty, Partner at EY India.

Adani Enterprises as the Group’s Incubator

As the flagship entity, Adani Enterprises serves as the Group’s business incubation platform — identifying, developing, and scaling new ventures before spinning them off into independent listed entities.
Over the past two decades, this model has yielded some of India’s largest infrastructure companies and positioned the Group as a leader in energy, transport, and digital ecosystems.

Currently, AEL is focused on new-generation sectors like green hydrogen, airport management, and advanced manufacturing, aligning with India’s national goals for clean energy and infrastructure-led growth.

The ₹25,000 crore rights issue by Adani Enterprises marks a defining moment in the Group’s post-2023 revival story.
It signals confidence, transparency, and strategic foresight — qualities that have helped the Adani Group regain market trust and global investor attention.

As India moves into a phase of accelerated infrastructure and clean energy development, this capital infusion is set to position Adani Enterprises at the heart of that transformation.

“We are investing in the future — India’s future,” Gautam Adani has often said, a sentiment that continues to drive his conglomerate’s ambitious yet disciplined expansion.

(Economy India)