New Delhi, Nov 25: Billionaire Gautam Adani's conglomerate on Friday said it will raise Rs 20,000 crore in equity to fund the massive expansion at his sprawling business empire that now spans from ports to energy to cement.

Adani Enterprises Ltd, the flagship firm of Asia's richest person, will raise funds through the issue of fresh equity shares, it said in a stock exchange filing.

The public offering will help Adani Enterprises Ltd (AEL), which is the business incubator for the group and currently houses businesses from civil aviation to data centres, diversify the shareholder base and build its credibility and acceptance among investors. Union Budget 2023–24: Maharashtra Deputy CM Devendra Fadnavis Seeks Incentives for Clean Energy Industries, Increase in SNP Rates.

Promoters currently hold 72.63 per cent shares of AEL. Of the remaining 27.37 per cent, almost 20 per cent is held by insurance companies and foreign portfolio investors. Shares of AEL have more than doubled in the last one year, giving it a market value of Rs 4.46 lakh crore. Benchmark S&P BSE Sensex index has risen just 5.4 per cent over the same period.

In the stock exchange filing, AEL said its board of directors met on Friday and approved "raising of funds by way of a further public offering through a fresh issue of equity shares by the company aggregating up to Rs 20,000 crore."

The company will seek shareholder approval for the offering through a postal ballot. The Adani group has previously stated that it is working on plans to increase the free float.

Adani started AEL in 1988 with the commodity trading business and used it as an incubator of new businesses before spinning them off into separately listed firms. The group now has a significant presence in ports, airports, roads, power, renewable energy, electricity transmission, gas distribution, real estate, FMCG, cement and financial services. Recently, the group also entered the media business. India Will Be a 40 Trillion-Dollar Economy by 2047, Says Mukesh Ambani at Convocation of PDEU in Gujarat.

Ports, power, transmission, green energy, gas and edible oil businesses are separately listed companies. The group has made forays into a diverse array of businesses with dealmaking in recent months. It recently acquired Holcim Ltd's India cement units for USD 10.5 billion, India's second-biggest deal of the year. It is also making a bid to take over New Delhi Television Ltd (NDTV).