Adani Green Energy’s board is expected to meet next month to approve a share sale to raise between $750-850 million, taking the total proposed fundraising by the group to about $3.4 billion.
Two other group companies — Adani Transmission and Adani Enterprises — have already obtained board approval to raise ₹21,000 crore (roughly $2.5 billion) through qualified institutional placements. The meeting for shareholders’ approval is scheduled for the middle of June, after which the fundraising will take place.
The board of Adani Green was scheduled to meet last week but it was cancelled owing to the non-availability of independent directors.
This is the second big fundraising exercise by the group after the damaging allegations by short seller hedge fund Hindenburg Research, that led to Adani Enterprises having to scrap its ₹20,000-crore follow-on public offer in February with retail investors staying away from subscribing to it.
Subsequently in March, the group, in firefighting mode and in dire need of funds, sold small chunks of promoter stake in four group companies to US-based growth equity fund GQG Partners to raise over ₹15,000 crore. Reports have suggested that GQG Partners has pumped in about $500 million more in acquiring shares in Adani stocks recently, but it was not clear whether these were secondary market purchases.
With a debt burden in excess of $20 billion, maturing debt to be serviced stretching over the next several years and expansion plans already charted out, the group needs funds on several counts.
Financially and in terms of perception, the group is in a stronger position now than it was previously with all the companies in the group showing healthy growth. It has managed to repay short-term, high-cost debt while also reducing pledged promoter stake in group companies.
It is investing in new energies and building a large-scale solar generation capacity in the country. Its intention is to be the largest player in the infrastructure sector after the government. It is working towards getting its group companies to a stage where there is little day-to-day strategic input from promoters. The ports and power businesses are expected to get there soon.