Adani Transmission says board approves fundraising of up to Rs 8,500 cr
The fundraising plan from one of the Adani Group companies comes months after a report from US-based short-seller Hindenburg Group battered investor confidence
- May 13, 2023,
- Updated May 13, 2023 2:14 PM IST
The fundraising plan from one of the Adani Group companies comes months after a report from US-based short-seller Hindenburg Group battered investor confidence
Gautam Adani-controlled Adani Transmission on Saturday said that it is planning to raise funds through Qualified Institutional Placement (QIP) or other routes. The electric power transmission company on Saturday, in a regulatory filing, said its board has approved raising up to Rs 8,500 crore, which is subject to shareholders’ approval.
“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,” the company said in the filing.
A QIP is a capital-raising method, which can be adopted by a publicly-traded firm, wherein it 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, is limited to institutions or qualified institutional buyers.
On Wednesday, three Adani Group companies — Adani Enterprises, Adani Green, and Adani Transmission — told the stock exchanges about the board meeting to consider the fundraising proposal. However, on Friday Adani Green said its board meet has been deferred to May 24.
Earlier this week, Bloomberg reported that the companies are planning to raise as much as $5 billion in a bid to test investor confidence four months after US-based Hindenburg Research released a scathing report alleging manipulation of share prices and fraud, following which the group shares plunged at the stock market.
The fundraising will ease concerns around the conglomerate's ability to service its debt and will help in instilling some confidence among investors, the report said.
Also read: Vedanta Q4 results: Net profit declines 57% to Rs 3,132 crore
Also read: MSCI rejig sends Adani Transmission, Adani Total Gas shares tumbling
The fundraising plan from one of the Adani Group companies comes months after a report from US-based short-seller Hindenburg Group battered investor confidence
Gautam Adani-controlled Adani Transmission on Saturday said that it is planning to raise funds through Qualified Institutional Placement (QIP) or other routes. The electric power transmission company on Saturday, in a regulatory filing, said its board has approved raising up to Rs 8,500 crore, which is subject to shareholders’ approval.
“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,” the company said in the filing.
A QIP is a capital-raising method, which can be adopted by a publicly-traded firm, wherein it 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, is limited to institutions or qualified institutional buyers.
On Wednesday, three Adani Group companies — Adani Enterprises, Adani Green, and Adani Transmission — told the stock exchanges about the board meeting to consider the fundraising proposal. However, on Friday Adani Green said its board meet has been deferred to May 24.
Earlier this week, Bloomberg reported that the companies are planning to raise as much as $5 billion in a bid to test investor confidence four months after US-based Hindenburg Research released a scathing report alleging manipulation of share prices and fraud, following which the group shares plunged at the stock market.
The fundraising will ease concerns around the conglomerate's ability to service its debt and will help in instilling some confidence among investors, the report said.
Also read: Vedanta Q4 results: Net profit declines 57% to Rs 3,132 crore
Also read: MSCI rejig sends Adani Transmission, Adani Total Gas shares tumbling