Adani Power Ltd announced that its board will consider raising up to Rs 5,000 crore through the issuance of non-convertible debentures (NCDs) during its upcoming board meeting on October 28, 2024. The company disclosed in a late-evening stock exchange filing that the funds could be raised through public offerings or private placements, in one or more tranches, subject to regulatory and other necessary approvals. Specific details regarding the intended use of the funds or the timing of the issuances have not been provided.
The fundraising initiative comes as Adani Power prepares to release its Q2 FY25 financial results on the same day as the board meeting. Despite a remarkable 86% surge in share price over the past year, driven by strong market sentiment and increased investments, the stock has recently struggled. Since peaking in June, the share price has declined by 14% in the last month and 6% over the past week, ending at Rs 583.05 on October 23. This recent pullback has occurred despite the stock significantly outperforming the broader NSE Nifty 50 index’s 28% gain over the past year.
However, Adani Power managed to attract fresh investment from its key stakeholders in the market volatility. The promoters increased their stake by 2.25 percentage points to 75.178 during the September quarter, now valued at around Rs 5,703 crore. Major institutional investors like GQG Partners have shown confidence in the company by raising investments across Adani Group companies. The total infusion received during the quarter for the conglomeration is close to Rs 19,000 crore.
This fundraising will improve the financial position of Adani Power and help the business in its strategic initiatives at a time when the group is facing recent challenges.
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Source: Moneycontrol
News Desk
