Shares of Indian billionaire Gautam Adani's group will be in focus Monday after the boards of two companies, including the flagship, approved proposals to raise as much as $2.6 billion. Adani Enterprises Ltd., the incubator for new group businesses, received approval to raise up to 125 billion rupees ($1.5 billion) through a Qualified Institutional Placement (QIP) or other modes.
"Pricing will be key, with equity dilution another factor to watch," said Rahul Sharma, an analyst at securities firm Karvy Stock Broking.
The plans come as the ports-to-power conglomerate continues a comeback strategy after being hit by allegations of accounting fraud and stock manipulation from US short-seller Hindenburg Research in late January.
"The company is working diligently towards addressing all concerns raised by various stakeholders and is confident that it can navigate these challenges successfully," said Sandeep Mehta, CFO at Adani Enterprises Ltd.
The Supreme Court of India is awaiting a report from the regulator on these allegations but has requested more time as it collates financial data on the conglomerate locally and overseas.
Meanwhile, sentiment may also get a lift from a move by India's two largest bourses – National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) – who have decided to remove shares of Adani Transmission, Adani Green Energy Limited and Adani Total Gas Ltd. from their list of firms under additional surveillance measures.
"We believe this decision reflects our commitment towards transparency in operations and adherence to regulatory norms," said Sunil Parekh, spokesperson for The Adani Group.
Investors are expected keep an eye on developments related to both raising funds through QIP or other modes and any updates regarding investigations into Hindenburg Research's allegations against The Adani Group.