Shareholders of Adani Transmission and Adani Enterprises have approved the raising of funds by the companies through qualified institutional placements.
The two companies are planning to raise a total of ₹21,000 crore, with Adani Enterprises aiming to raise ₹12,500 crore and Adani Transmission ₹8,500 crore. Both companies had received board approval on May 13 to raise funds. The voting results showed that shareholders voted overwhelmingly in favour of the resolutions.
Better positioned
This is the second major fundraising exercise by the group after damaging allegations made by short seller hedge fund Hindenburg Research. In early March, the group had raised over ₹15,000 crore from GQG Partners with the promoters selling small chunks of stakes in Adani Enterprises, Adani Ports, Adani Transmission and Adani Green Energy.
The group is in a much better position now in terms of its funds position. Since then, it has prepaid margin-linked share-backed financing totalling $2.15 billion while also prepaying $700 million of bridge loan taken to finance the acquisition of ACC and Ambuja Cements.
The group has refinanced some of its high cost debt and rolled over others while Adani Ports has also completed the buyback of $130 million of bonds out of the $650 million maturing in 2024.
The funds will be used not only to retire debt but also for some of the planned investments that it had pushed back after it decided to withdraw a ₹20,000-crore follow-on public offer in February.
At the end of FY23, the group’s gross debt was ₹2.3 lakh crore while net debt was ₹1.9 lakh crore.