According to sources, Adani Enterprises is returning to the stock market with a $1 billion share sale

By Bhakti Tambe, Jayshree P Upadhyay and Dhwani Pandya

MUMBAI (Reuters) – Adani Enterprises Ltd. is expected to launch a $1 billion share sale by mid-September, three sources familiar with the matter told Reuters, the latest attempt by Indian billionaire Gautam Adani to restore the fortunes of his empire.

The share sale will be the second by an Adani group company this year, following the sale of its power transmission unit last week.

The offering of existing shares marks Adani Enterprises’ return to the stock markets after the flagship company called off a $2.5 billion share sale in February last year after US-based short-seller Hindenburg Research accused the Adani group of abusing offshore tax havens and engaging in stock manipulation.

Adani has denied any wrongdoing.

A spokesman for the Adani Group did not respond to an email request for comment.

“Bankers involved in the deal have been briefed by Adani officials and are aiming to launch the share sale in late August or early September. Currently, work is underway on $1 billion, but bankers have approval for a higher capital raising,” said the first of the three sources, who asked not to be identified because the plans are confidential.

The board approved potential fundraising of up to $2 billion in May.

The funds will be raised through a Qualified Institutional Placement (QIP), a mechanism used by listed Indian companies to raise funds from large institutions. The company will approach investors soon, the sources said.

The Adani group has appointed ICICI Securities, SBI Capital Markets and Jefferies to facilitate the share sale. The banks did not respond to requests for comment.

“Adani Enterprises wants to attract certain US investors who are focused on infrastructure but have never looked at India,” the second source said.

Adani Energy Solutions QIP received bids last week from US investors focused on utilities, sovereign wealth funds from the United Arab Emirates and Qatar, and Indian mutual funds. The issue received bids for six times the number of shares offered.

“Following the success of Adani Energy QIP, Adani is confident that there will be strong demand for the group’s flagship company as well,” the third source said.

Adani Enterprises is also planning its first public bond issue in the coming weeks to raise up to 6 billion rupees ($71 million). Last year, the company had decided not to issue a bond of up to 10 billion rupees.

(1 US dollar = 83.9222 Indian rupees)

(Reporting by Bhakti Tambe, Jayshree P Upadhyay, Dhwani Pandya in Mumbai; Editing by Mark Potter)