Adani Energy Solutions Announces Rs 12,500 Crore Fundraise Approval

Adani Energy Solutions reported standalone borrowings of Rs 5,165 crore at the end of fiscal year 2024, nearly doubling from the previous year

Adani Energy Solutions has received board approval to raise up to Rs 12,500 crore through Qualified Institutional Placement (QIP) or other permissible methods, as per applicable laws. The fundraising will be conducted in multiple tranches, although the company has yet to specify the purpose or pricing of the securities.

The power distribution company reported standalone borrowings of Rs 5,165 crore at the end of fiscal year 2024, nearly doubling from the previous year. On May 27, Adani Energy Solutions' shares closed at Rs 1,104.70 apiece, remaining almost flat for the day.

In an official statement to the stock exchange, Adani Energy Solutions said, "We wish to inform you that the Board of Directors of the Company… has approved raising of funds… for an aggregate amount not exceeding Rs 12,500 crore or an equivalent amount thereof by way of Qualified Institutional Placement (QIP) or other permissible mode in accordance with the applicable laws, in one or more tranches."

The company also noted that this plan is subject to necessary approvals, including the approval of shareholders at the Annual General Meeting (AGM) scheduled for June 25, 2024, as well as other regulatory and statutory consents.

In another development, the board of Adani Enterprises is set to meet on May 28 to discuss and approve a separate fundraising initiative. The Adani conglomerate, spanning sectors from ports to power, has secured nearly $6 billion from prominent investors such as GQG Partners LLC, Qatar Investment Authority, and TotalEnergies SE since January 2023.

This move signals a return to aggressive expansion after a short-seller attack by Hindenburg Research in early 2023 forced the conglomerate to reduce debt and slow its growth trajectory, following a stock market crash that erased over $150 billion in market value.

Meanwhile, shares of Adani Ports and Special Economic Zone (APSEZ) on Monday ended over 1 per cent higher and hit the 52-week high level during the day.

This comes less than a month before the company's entry into the 30-share BSE Sensex from June 24 replacing IT major Wipro. The stock went up 2.93 per cent to hit the 52-week high of Rs 1,457.25 during the day on the BSE. It ended at Rs 1,431.75, up 1.13 per cent.