According to the report, the exercise to raise this sum through QIP is part of a group's plan that was stated last year. Adani Green Energy is apparently seeking board approval to finance up to $1 billion through qualified institutional placement (QIP).
According to the Economic Times, Adani Green Energy intends to raise between $750 million and $1 billion. Prior to this, two Adani Group entities had received board clearance for fundraising. Adani Enterprises (Rs 125 billion) and Adani Transmission (Rs 85 billion) are two of them.
As per the report, the exercise to raise this sum through QIP is part of a group's plan that was revealed last year. The plan's goal was to create a 'three-year equity cushion' to fund expansion plans.
Adani Green Energy's cash would reportedly be used to cover a $750 million debt relating to a three-year bond issued in 2021 and due next year. Furthermore, the funds are supposed to be held in a separate redemption reserve account.
Once that is done, the report adds that the company is likely to pay the due amount on the due date. “We do not comment on routine business matters. All public disclosures on business matters are disclosed when appropriate,” the publication quoted an Adani Group spokesperson as saying.
It should be noted, however, that the Adani Green Energy board meeting scheduled for today, May 24, has also been cancelled.
See also:
Adani group aims to raise Rs 210 bn through stake sale in two companies
Gautam Adani concentrates on green energy as profits surge
