A fundraising effort by three Adani-controlled companies is expected to raise $5 billion, according to people familiar with the matter, in a pivotal test of investor confidence less than four months after a devastating report about short-sellers sank the empire.

People with direct knowledge of the situation asked not to be identified as the information is private for Adani Enterprises Ltd., Adani Green Energy Ltd., and Adani Transmission Ltd. to raise a war chest for the businesses.

A meeting of the boards of the three firms is scheduled for Saturday to consider selling shares or securities to raise funds, according to exchange filings. The company didn't disclose how much it intends to raise or who it is working with for potential deals. After climbing Thursday, Adani Group stocks were largely lower in early Mumbai trading Friday after MSCI said it would remove two companies from its index.

In order to take advantage of market opportunities quickly, companies' boards approve fundraising plans. There's no guarantee the companies will announce a sum they intend to raise after the Saturday board meetings, the people said.

The Adani Group's move to tap a broader group of investors may backfire if the market does not believe that the cloud over the stocks has lifted or if the prices remain too high.

The coal-to-cement company denied Hindenburg Research's fraud allegations in January, but the broadside triggered a weeks-long stock run that wiped out more than $100 billion of market value, forcing the billionaire to scrap a $2.4 billion share sale at preattack prices.

Adani Transmission and Adani Total Gas Ltd. will be excluded from MSCI's India gauge at the end of May. There was a 5% drop in both stocks on Friday. Adani Enterprises erased its early gains and was trading 0.6% lower in Mumbai.

According to Brian Freitas, an independent equities analyst who publishes on Smartkarma, the two stocks will lose about $390 million together if removed from MSCI's India gauge.

According to Freitas, who had predicted the exclusion, passive selling will keep the two stocks under pressure. “Especially Adani Transmission, where there could also be some fundraising,” he added.

In March, the Adani family raised about $1.9 billion by selling shares in four companies to US investment firm GQG Partners, held investor roadshows, and prepaid debt as they raced to bolster confidence and repair the damage caused by short sellers.

The people said the Adani company's annual financial planning includes enabling resolutions to raise capital at board meetings.

According to Bloomberg's analysis of exchange filings, Adani Enterprises and Adani Transmission have sought board approval every year in April or May for fundraising. Adani Green Energy secured such permission every year except in 2021, the data shows. The three firms raised almost $2 billion from Abu Dhabi-based International Holding Company PJSC in April last year.

Once finalized, the current round of fundraising will be the first for Adani companies since the Hindenburg attack. Having a successful share sale would contribute greatly to Adani's recovery from the crisis, although the terms of the deal and investor profile would also be crucial.

Adani's valuations were also cooled by the stock meltdown earlier this year. Investors may be more attracted to them if they receive a further discount in addition to the rout.

A 138% increase in profit was posted by Adani Enterprises in its latest quarter, as revenue increased 26% due to mining and airport operations, and gross debt shrank by 6.5%. During the March quarter, Adani Green's profit quadrupled and its operational capacity grew by almost half. By 2030, it plans to have 45 gigawatts of capacity.