Adani Enterprises has given necessary information about its rights issue worth about Rs 25,000 crore. The rights issue proposals were approved during the company’s quarterly results last month. Adani Enterprises is the flagship company of the Adani Group.
The company will issue 13.85 crore shares in the rights issue.
Adani Enterprises 13.85 crore partially paid-up shares will be issued in the rights issue. The face value of each share will be Re 1. The company will raise a total of Rs 24,930 crore from the rights issue. The company has fixed the price of Rs 1,800 per share for the rights issue. This is 24 percent less than the closing price of the company’s shares on November 11.
Companies present rights issue to raise capital
Companies offer rights issues to raise additional capital. In this issue, the company gives an opportunity to buy shares only to those investors who already hold shares of the company. Under rights issue, the company issues shares to investors at a discount from the current price. This is an opportunity to buy the company’s shares at a lower price for those investors who want to increase investment in the company’s shares. The decision to invest in a rights issue is voluntary.
The company will give an opportunity to buy 3 shares for every 25 shares.
Adani Enterprises has set November 17 as the record date for the rights issue. This means that investors who have Adani Enterprises shares in their demat accounts till this date will be able to buy shares in the rights issue of the company. Under the rights issue, the company will give investors the opportunity to buy three shares for every 25 shares. Shares of Adani Enterprises closed at Rs 2,370 on November 11 without any significant change in prices.
Adani Enterprises shares fell 18% in the last one year
Adani Enterprises had announced its September quarter results earlier this month. During this period, the company’s profit increased by 84 percent to Rs 3,199 crore. One-time gain of Rs 3,583 crore has a major role in this. The company earned this gain from selling its stake in AWL Agri Business. Earlier the name of this company was Adani Wilmar. Adani Enterprises shares have fallen 18 percent in the last one year.