Adani Energy Solutions plans to raise ₹12,500 crore through QIP

Adani Energy Solutions Ltd, led by Gautam Adani, has announced a fundraising plan of up to ₹12,500 crore through Qualified Institutional Placement (QIP) or any other permissible mode. The power distribution company revealed this decision in an exchange filing after a board meeting held on May 27, 2023.

The fundraising initiative is subject to approval from the company’s members at the upcoming Annual General Meeting scheduled for June 25, 2024, as well as other regulatory and statutory approvals.

Despite the news of the fundraising, shares of Adani Energy Solutions closed 0.17% down at ₹1,104.05 on the BSE today. The stock is currently down 11.6% from its 52-week high of ₹1,250 reached on January 3, 2024. The company’s market capitalization stands at ₹1,23,150.39 lakh crore.

In terms of financial performance, Adani Energy Solutions reported a net profit of ₹1,197 crore in FY24, marking a 12% increase year-on-year. The operational EBITDA also grew by 7% to ₹5,695 crore for the full year. The transmission business maintained an EBITDA margin of 91%, while revenues saw a 17% growth due to various operational factors.

Adani Energy Solutions Limited is a key player in the private transmission and distribution sector in India, with a focus on smart metering. The company achieved an average system availability of over 99.6% in FY24 and operationalized 1,244 circuit kilometers during the year, expanding its total transmission network to 20,509 circuit kilometers.