Adani Energy Gets Board Approval to Raise Up to $1.5 Billion

Adani Energy Solutions Ltd., under the leadership of billionaire Gautam Adani, has received board approval to raise up to 125 billion rupees ($1.5 billion). This decision indicates a significant step toward enhancing the company’s capital investments.

The fundraising plan, still subject to further approvals from shareholders and regulatory bodies, is set to be conducted in multiple phases through various financial instruments, including institutional share sales. This was disclosed by the company in a recent filing.

Adani Enterprises Ltd., the group's flagship entity, will convene a board meeting on Tuesday to consider additional fundraising proposals. Previous approvals granted in 2023 for raising a combined total of $2.6 billion are approaching expiration in June.

Insiders familiar with the discussions suggest that Adani Enterprises is expected to gain approval for raising up to $1.5 billion, while Adani Energy may raise up to $500 million.

An Adani Group spokesperson did not immediately comment on the fundraising initiatives.

The companies are targeting several major international investors interested in India's infrastructure growth. Successfully securing these investments would help diversify the shareholder base and strengthen the group's global presence.

Since the beginning of 2023, the Adani Group, spanning industries from ports to power, has raised nearly $6 billion from notable investors including GQG Partners LLC, Qatar Investment Authority, and TotalEnergies SE. The group is resuming its aggressive expansion following a setback caused by a report from Hindenburg Research, which significantly reduced market value and slowed growth temporarily.

These board approvals act as enabling resolutions, allowing the companies to move quickly when optimal financing conditions arise. There is no immediate requirement to raise the approved funds. Notably, five out of ten Adani Group stocks have recovered to their levels before the Hindenburg report, and Gautam Adani’s net worth has increased by $25 billion this year, exceeding $109 billion. While Adani Enterprises has fully recovered from its losses since the Hindenburg report, Adani Energy remains approximately 60% below its previous valuation.

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