Shares of Adani Enterprises witnessed a significant 6% surge this week following the company's announcement of comprehensive details regarding its massive ₹25,000 crore rights issue. This marks one of the largest fundraising initiatives by the ports-to-power conglomerate led by billionaire Gautam Adani since the cancellation of its fully subscribed ₹20,000 crore follow-on public offering in 2023.
Record Date and Key Financial Details
The board of Adani Enterprises had initially approved the rights issue during its meeting on November 4, with further specifics finalized on November 11. The company has set Monday, November 17 as the record date to determine eligible shareholders for participation in this substantial fundraising effort.
Under the rights issue, Adani Enterprises will issue a total of 13,85,01,687 rights equity shares, amounting to an aggregate value of ₹24,930.30 crore. These shares will be partly paid-up, each having a face value of ₹1. The rights issue price has been fixed at ₹1,800 per share, representing a substantial 24% discount to Tuesday's closing price and a 28% discount to the last closing price of ₹2516.85 on the BSE.
Important Dates for Investors
Investors need to be aware of several critical dates in the rights issue timeline. Since the Indian stock market follows a T+1 settlement mechanism, investors must have purchased shares of Adani Enterprises on or before Friday, November 14 to be eligible for participation.
The rights entitlement credits will appear in eligible shareholders' demat accounts on November 18. The application window for the rights issue remains open from November 25 to December 10, during which investors can apply by paying the application price of ₹900. For those choosing not to subscribe, the last day for market renunciation is December 5.
The finalization of basis of allotment and the official allotment of rights shares will occur on December 11, followed by the credit of partly paid rights shares to investors' demat accounts on December 12. The partly paid rights shares will begin trading on stock exchanges on December 16.
Share Ratio and Payment Structure
The rights equity shares are being offered to eligible equity shareholders in the ratio of 3:25, meaning investors are entitled to three rights shares for every 25 fully paid-up shares of Adani Enterprises held on the record date.
The company has structured the shares on a partly paid basis, allowing shareholders to spread payments across three tranches. The initial application money requires ₹900 per share, followed by a first call of ₹450 per share between January 12-27, 2026, and a second and final call of ₹450 per share from March 2-16, 2026.
Utilization of Funds and Impact
Adani Enterprises has outlined clear objectives for the proceeds raised through this rights issue. The company plans to allocate ₹18,698 crore for repayment or pre-payment of certain outstanding borrowings and perpetual debt instruments issued by the company and its subsidiary, Adani Airport Holdings Limited, including accrued interest.
Additionally, ₹6208.05 crore has been earmarked for general corporate purposes, as specified in the letter of offer for the rights issue. Prior to the issue, the company had 1,15,41,80,729 outstanding equity shares, which will increase to 1,29,26,82,416 shares post the rights issue, assuming full subscription.
This strategic move represents a significant step in Adani Enterprises' growth trajectory and capital restructuring plans, providing existing shareholders with an opportunity to participate in the company's expansion while managing their payment commitments through a staggered approach.
