Adani Energy Solutions plans to raise ₹12,500 crore through a qualified institutional placement of shares or eligible securities, the company said after a board meeting that was held to consider the proposal.

The proposal to raise funds will be put up for the approval of shareholders at the annual general meeting to be held next month.

Last year the company had taken approval to raise a similar amount but did not follow through with that plan.

The funds will be used to finance its expansion plans. Earlier this month, it had acquired Essar Transco from Essar Power and Essar Transmission for ₹1,900 crore. With this acquisition, the company’s network increased to 21,182 circuit km and the plan is to take it to 25,000 ckm.

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In an earnings call earlier this month, the company’s management had said that over the next 12-15 months it was looking at a tender pipeline worth ₹1.1-lakh crore in transmission assets and its share would be around 20-25 per cent. It was especially targeting projects that were critical for renewable energy park in Khavda.

In the current financial year, it is aiming for a capex of around ₹6,000 crore that includes ₹1,200-1,500 crore for the Mumbai distribution business and the remaining for the transmission business. It is also looking at spending on smart meter projects, which will be in addition to the above.