Adani Energy to raise ₹4,300cr via stake sale
What's the story
Adani Energy Solutions, a company owned by billionaire Gautam Adani, has announced its plan to raise ₹4,300 crore ($502 million) through a share sale.
The company's board approved the proposal yesterday.
The funds will be raised through a "Qualified Institutional Placement" (QIP) in one or more tranches, as per an exchange filing.
Business diversification
Adani Group's diverse interests and recovery efforts
The Adani Group, which has businesses ranging from ports to green energy, is slowly winning back investor confidence.
This comes after US bribery charges against its founder had initially affected sentiment.
In April, the Group raised around $750 million for an acquisition, with BlackRock Inc. taking up nearly one-third of the bond issue.
Meanwhile, last week, the firm's ports unit secured a $150 million bilateral loan from DBS Group Holdings Ltd.
Rating update
Fitch Ratings' assessment of Adani Energy's liquidity risk
In March, Fitch Ratings had removed Adani Energy from a rating watch and assigned it a negative outlook.
The move was based on the moderating risks associated with the group's liquidity.
"The Adani group has demonstrated adequate funding access since the US bribery charges," Fitch said in a statement, reflecting positively on the company's financial management amid challenges.