Indian billionaire Adani’s firm weighs $1.8 bln fundraise

Indian billionaire Adani’s firm weighs $1.8 bln fundraise

Adani Enterprises Ltd., the flagship firm of Asia’s richest person, is considering issuing at least $1.8 billion in new shares, according to people familiar with the matter.

Billionaire Gautam Adani’s conglomerate is working with advisers on the follow-on issue and could sell the shares as soon as next year, the people said, asking not to be identified as the information is private. The sale could raise as much as $2.4 billion, one of the people said.

For the latest headlines, follow our Google News channel online or via the app.The issuance will test investor appetite for a stock that has had outsized gains, compounded by lower liquidity relative to peers and sparse analyst coverage. The conglomerate has previously attributed the small free float to the Adani family holding about 75 percent of Adani Enterprises, and earlier this year said it is working on plans to increase the free float.

Shares in Adani Enterprises have surged 132 percent in the year to date, giving it a market value of about $55 billion. India’s NSE Nifty 50 index -- it added Adani’s flagship in the gauge in September -- has risen just 5.1 percent over the same period.

Adani Enterprises is trading at a valuation of