Adani Transmission to raise Rs 8,500 crore through QIP

"The board has approved raising of funds by way of issuance of such number of equity shares having face value of Rs 10 each of the company (equity shares) and/or other eligible securities or any combination thereof (hereinafter referred to as 'securities'), for an aggregate amount not exceeding Rs 8,500 crore or an equivalent amount thereof by way of Qualified Institutional Placement ('QIP') or other permissible modes,” it said.

Earlier on May 10, three Adani Group companies — Adani Enterprises, Adani Green, and Adani Transmission — informed the bourses about the board meeting to consider the fundraising proposal. The companies are considering a fundraising that may draw as much as $5 billion, according to a Bloomberg report, in a pivotal test of investor confidence in the tycoon’s empire less than four months after Adani Enterprises withdrew its Rs 20,000 crore FPO, despite being fully subscribed.

Adani Enterprises, the flagship, as well as Adani Green Energy and Adani Transmission, may raise between $3 billion and $5 billion for a war chest to bolster the businesses, the report added.

The fundraising will likely ease concerns around the conglomerate's ability to service its debt and will help in instilling some confidence among investors after a scathing US-based short-seller report plunged the group into crisis.

A QIP is a capital-raising method under which a publicly-traded firm can issue equity shares, fully and partially convertible debentures, or any other security convertible into equity shares other than warrants. A QIP, unlike an IPO (initial public offering), is limited to institutions or qualified institutional buyers.

According to a Bloomberg analysis, Adani Enterprises and Adani Transmission have sought board approval for fundraising every year in April or May since at least 2019. Adani Green Energy secured such permission every year except in 2021, the data shows. The three companies raised almost $2 billion from Abu Dhabi-based International Holding Company PJSC in April 2022.

Meanwhile, shares of Adani Transmission closed 3.49 percent lower at Rs 885 apiece on the BSE in Friday's trade. The stock was under pressure amid the Supreme Court's hearing on the Adani-Hindenburg row.