FCC

AGEL to raise Rs 12k crore to repay debt, boost capex

2023-07-10

The board of Adani Green Energy (AGEL) cleared plans to raise up to Rs 12,300 crore by way of qualified institutional placements (QIPs) of shares or any other share-sale instrument. The company will use the proceeds to repay debt and expand capacity. Two group companies — Adani Enterprises (AEL) and Adani Transmission — had earlier announced they would raise Rs 21,000 crore via the QIP/share sale route. All QIPs will be launched later this year.

Adani promoter entities, too, are raising funds to prepay debt. American financial powerhouse GQG Partners (GQG), along with other investors, acquired on June 28 via block deals additional shares worth Rs 8,200 crore from the Adani family in the group’s flagship Adani Enterprises and AGEL. Within days, promoter companies sold a 3 per cent stake in Adani Transmission to raise Rs 2,666 crore from GQG and other investors.

The promoter companies had in March raised Rs 15,446 crore by selling shares to GQG. Later that month, GQG bought from the market additional shares worth Rs 3,800 crore in Adani group companies. GQG’s investment led to a revival in Adani Group shares. In June, GQG’s total investment in AEL and AGEL increased to Rs 23,200 crore.