According to reports, Adani Green Energy is asking the board for permission to use the qualified institutional placement (QIP) to fund up to $1 billion.
The Economic Times said that Adani Green Energy intends to get authorisation to raise between $750 million and $1 billion. Two Adani Group entities have already received board permission for funding prior to this. These include Adani Transmission ($8,500 billion) and Adani Enterprises ($12,500 billion).
The exercise to acquire this money via QIP is a part of a group’s strategy that was revealed last year, the article continues. Building a “three-year equity cushion” was the rationale behind the strategy in order to support expansionary goals.
According to reports, Adani Green Energy would utilise the funds obtained to pay off a $750 million debt tied to a 2021 three-year bond that is due in 2019. Additionally, the funds must be stored in a special redemption reserve account.
After that is completed, the report states that it is probable that the business will make the required payment on time. We decline to comment on standard business issues. When appropriate, all public disclosures on commercial topics are made, a spokeswoman for the Adani Group told the newspaper.
The Adani Green Energy board meeting, which was due to take place today, May 24, has also been cancelled, according to PTI.
