Billionaire Gautam Adani’s Firms Consider Raising Up To $5 Billion

Three companies controlled by billionaire Gautam Adani are considering a fundraising that may draw as much as $5 billion, according to people familiar with the matter, in a pivotal test of investor confidence in the tycoon's empire less than four months after a scathing short-seller report plunged it into crisis, as per a Bloomberg report.

Adani Enterprises Ltd., the flagship, as well as Adani Green Energy Ltd. and Adani Transmission Ltd., may raise between $3 billion and $5 billion for a war chest to bolster the businesses, the people said, asking not to be identified as the information is private, stated the Bloomberg report.

The boards of the three firms are meeting Saturday to consider raising funds via the sale of shares or other securities, according to exchange filings late Wednesday. They didn't disclose how much they intend to raise or who they're working with for potential deals. Adani Group stocks, which climbed Thursday, were largely lower in early Mumbai trading Friday as MSCI Inc. said it will remove two companies from its India gauge, added the Bloomberg report.

The companies' boards usually approve fundraising plans to enable management to quickly tap markets when opportunities arise. Discussions are still underway and there's no certainty the companies will announce a sum they're looking to raise after the Saturday board meetings, the people said.