Adani Group plans to raise over $12.5 billion equity over next five years: Report

As per the company statement, till September 30, 2024, Adani Group had a cash balance of Rs 53,024 crore, representing 20.5% of gross debt.

The Adani Group is planning to raise over $12.5 billion to partially fund capital expenditure of $57.16 billion, an Economic Times report said on Monday.

The conglomerate will raise the equity for the period of over five years, the report added. Quoting Adani Group CFO Jugshinder Singh, the report said that the average capital expenditure will be little above Rs 1 lakh crore for next five years.

As per the report, the Group may raise the funds either by qualified institutional placement or rights issue. It should be noted that in the last five years, Adani Group has remained one of the largest business group to raise equity in India.

Between 2019 and 2024, Adani Group had raised around $13.8 billion, the ET report added. Major Adani companies that had raised the equity included Adani Total Gas, Adani Green Energy, Adani Enterprises among others.

According to the ET report, majority of the capex will be used towards power transmission, utilities and green energy. This will account to 85 percent of the capex. The rest of the quota will be spent on mining, metals.

The February analyst presentation shows that the core infrastructure portfolio of Adani Group continues to power cash flow generation. As per the company statement, till September 30, 2024, Adani Group had a cash balance of Rs 53,024 crore, representing 20.5% of gross debt.