Adani Transmission, Adani Group’s electrical power transmission company, has received shareholders’ approval to raise up to ₹8,500 crore through issuance of shares via qualified institutional placement (QIP) or other modes.
The special resolution was passed with 98.64% votes in its favour. About 1,180 members holding 1.02 billion shares had cast their votes, Adani Transmission said in a stock exchange update.
The proceeds would be used to set up 400 KV substation and transmission lines in Maharashtra. In 2021, the cost of the project was pegged at ₹2,100 crore, of which the firm is now drawing ₹1,700 crore. In 2019, Adani Transmission received a letter of intent from Maharashtra State Electricity Transmission Company to build, own, operate and maintain a transmission project in the state for 35 years. The project involves developing Mumbai’s first-ever 400 kV substation facility, which was awarded through a tariff-based competitive bidding process.
Adani Group companies are executing large-scale projects across the infrastructure and utility space, including adding capacity at its cement business, and need cash flows for these.
On May 13, two group companies — Adani Enterprises and Adani Transmission — announced plans to raise up to a total of ₹21,000 crore through issuance of shares, securities or other permissible modes. The companies had also sought shareholders’ approvals through postal ballots.
Flagship Adani Enterprises was planning to raise up to ₹12,500 crore and Adani Transmission up to ₹8,500 crore, and the proceeds would be used to secure additional capital for the companies’ operations and growth strategies.
Adani Green Energy, the group’s renewable energy arm, was also looking to raise funds through a share sale. While the company has not disclosed the amount it intends to raise, sources close to the development had told FE earlier that the company is looking to raise about $500-700 million (₹4,100-5,740 crore), which would be used for capex and paring debt.
The group’s debt as of March 31 stood at ₹2.27 trillion, of which 39% was in bonds, 29% loans from international banks and 32% with Indian banks and NBFCs. The gross value of the group’s assets was at ₹3.91 trillion.