Adani Green weighs raising 123 billion rupees to fund expansion, sources say

INDIAN billionaire Gautam Adani’s renewable energy unit is considering raising about 123 billion rupees (S$2 billion) to fund his coal-dependant conglomerate’s green diversification, people familiar with the matter said, following the fallout from a damaging short-seller broadside.

Adani Green Energy’s board will discuss plans to raise funds from institutional investors on Thursday (Jul 6) and will then seek approval from shareholders, the people said, asking not to be identified as the talks are private.

By selling shares through qualified institutional placement, or QIP, Adani Green is looking to bring on board more institutional investors and attract more research analysts to cover the firm, said one of the people. Only one analyst currently tracks the company, according to data compiled by Bloomberg.

Deliberations are ongoing and details of the fundraising, including size, could still change, the people said. An Adani Group representative couldn’t immediately comment when reached by phone.

The tycoon’s conglomerate has already announced fundraising plans of as much as US$2.6 billion for two other companies – Adani Enterprises and Adani Transmission – as it attempts a comeback from the crisis triggered by Hindenburg Research. The US-based short-seller in January levelled fraud allegations against Adani Group, which has denied any wrongdoing. The report wiped out more than US$150 billion from the conglomerate’s market value at one point. BLOOMBERG