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Adani Green Energy is set to seek board approval to raise Rs 6,150 crore to Rs 8,200 crore ($750 million to $ 1 billion) through the qualified institutional placement (QIP) route, said people aware with the matter.
Two companies from Adani Group, Adani Transmission (Rs 8,500 crore) and Adani Enterprise (Rs 12,500 crore), received approval from the board to raise funds on May 13.
This move is a part of a group plan which was formed last year in order to build a ‘three year equity cushion’ to support expansion plans.
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Adani Green has secured such permissions from their board every year, except for in 2021, says Bloomberg.
The capital raised by Adani Green will be utilised to repay an outstanding $750 million, three-year bond issued in 2021, which is due next year. It is expected that money is likely to be kept in a dedicated redemption reserve account and paid on the due date, shared the people cited above.
The company’s original plan in order to repay the bond was to secure a special Reserve Bank of India approval but it decided against this move.
In an interaction with The Economic Times, Adani spokesperson stated, “We do not comment on routine business matters. All public disclosures on business matters are disclosed when appropriate.”
