Adani Green Energy Ltd will raise ₹12,300 crore by selling shares through qualified institutional placement, or QIP, or other permissible mode in accordance with the applicable laws, the renewable energy arm of the Adani Group said in a regulatory filing after its board meeting on July 6.
The fundraising will likely ease concerns of billionaire Gautam Adani's port-to-power conglomerate ability to service its debt and help in instilling some confidence among investors. It will also help to fund the coal-dependent conglomerate’s green diversification.
By selling shares through qualified institutional placement, or QIP, Adani Green is looking to bring on board more institutional investors and attract more research analysts to cover the firm, according to a report by Bloomberg.
In a regulatory filing by Adani Green Energy to the stock exchanges on July 6, the company said that the ‘’board approved raising of funds by way of issuance of such number of equity shares having face value of ₹10 each of the company (“equity shares") and / or other eligible securities or any combination thereof (hereinafter referred to as “securities"), for an aggregate amount not exceeding ₹12,300 crore or an equivalent amount thereof by way of qualified institutional placement (“QIP") or other permissible mode in accordance with the applicable laws.''
It added that this is ‘’subject to the receipt of the necessary approvals including the approval of the members of the company and other regulatory / statutory approvals, as may be required; and to seek approval of the shareholders for the aforesaid issuance and ancillary actions by way of postal ballot process.''
The Adani Group has already announced fundraising plans of as much as ₹21,000 crore for two other companies — Adani Enterprises and Adani Transmission — as it attempts a comeback from the crisis triggered by a negative report of US-based short seller Hindenburg Research.
While Adani Enterprises said it will raise ₹12,500 crore, Adani Transmission would raise ₹8,500 crore. In January, Hindenburg Research leveled fraud allegations against Adani Group, which has since denied any wrongdoing. The report wiped out more than $150 billion from the conglomerate’s market value at one point.
India's renewables sector has been one of the most lucrative sectors for international investors, finding its spot among one of the country's top five industries for overseas funds last year.
On July 6, shares of Adani Green Energy gained two per cent during the session and touched an intra day high of ₹973.25, settling 0.88 per cent higher at ₹956.30 apiece on the BSE.
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Updated: 06 Jul 2023, 03:29 PM IST
Adani Green Energy shares edge higher as board approves raising ₹12,300 crore via QIP | Mint - Mint
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