Adani Energy Solutions to raise ₹12,500 cr via QIP

Gautam Adani-led Adani Energy Solutions Ltd today said its board has approved a fundraising of up to ₹12,500 crore via Qualified Institutional Placement (QIP) or any other permissible mode.

"The Board of Directors of the Company (the “Board”), at its meeting held today, i.e. May 27, 2023, has approved raising of funds by way of issuance of such number of equity shares having face value of ₹ 10 each...for an aggregate amount not exceeding ₹ 12,500 crore or an equivalent amount thereof by way of Qualified Institutional Placement (“QIP”) or other permissible mode in accordance with the applicable laws, in one or more tranches," the power distribution company says in an exchange filing.

The company says the fundraising exercise will be subject to the approval of the members of the company at the ensuing AGM scheduled to be held on Tuesday, 25th June 2024, and such other regulatory or statutory approvals.

Shares of Adani Energy Solutions closed 0.17% down at ₹1,104.05 on the BSE today. The stock is currently down 11.6% compared to a 52-week high of ₹1,250 touched on January 3, 2024. At today's share price, the company's m-cap stands at ₹1,23,150.39 lakh crore.

Adani Energy Solutions reported a net profit of ₹1,197 crore in FY24, 12% higher YoY. For the full year, the operational EBITDA grew 7% to ₹5,695 crore. The transmission business maintained an EBITDA margin of 91%. Revenues witnessed a double-digit growth of 17% on account of the contribution from the newly operationalised transmission assets, commissioning of elements at North Karanpura and MP-II package lines, and an increase in the units sold because of higher energy consumption in the distribution business at Mumbai and Mundra.

In the fourth quarter of the previous fiscal year (2023-24), the company's PAT was ₹381 crore compared to ₹440 crore in the year-ago period, down 13.3%. The company's revenue came in at ₹3,560 crore, up 17.4% compared to ₹3,031 crore in Q4 FY23.

Adani Energy Solutions Limited (“AESL”) is a part of the Adani portfolio and the largest private transmission and distribution company in India, with a growing smart metering portfolio.

On operational parameters, the company saw an average system availability of over 99.6% in FY24. "Robust line availability resulted in an incentive income of ₹104 crore in FY24...operationalised 1,244 circuit kilometers during the year and ended with a total transmission network of 20,509 circuit kilometers."

In distribution business, Adani Energy says it sold 9,916 million units in FY24 vs. 9,062 million units last year on account of an uptick in energy demand. "Distribution loss has been improving consistently and stands at 5.29% in FY24 as against 5.93% in FY23 and maintained supply reliability at over 99.9%."