Adani Power to consider doubling NCD issue, seek nod for Rs 5,000 crore QIP

The previously approved fund-raising limit for non-convertible debentures (NCDs) is being proposed to be enhanced from Rs 5,000 crore to Rs 11,000 crore.

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The board of Adani Power is looking to double an existing fund raise plan to Rs 10,000 crore through the issue of non-convertible debentures (NCDs), as well as consider a fund raise through Qualified Institutional Placement or other measures of shares worth Rs 5,000 crore, a statement said on January 26.

Shares of Adani Power are lower by over 3% in early trade on January 27.

The Board Adani Power of the company will meet on Wednesday, January 29, to consider these proposals. On Wednesday, the board would also consider and approve the financial results for the quarter and nine months ended December 31, 2024.

The NCD proposal supersedes the earlier board resolution passed on October 28, 2024, and the funds will be raised through either a public issue, a private placement, or a mix of both. The issuance may happen in one or more tranches, subject to approvals.

The board will also consider the proposal of raising up to Rs 5,000 crore through the issuance of equity shares or other eligible securities, a decision which will also require shareholder approval. The equity fund raise is likely to happen through a private placement, QIP issue or a preferential issue.

"Our existing operations will generate sufficient cash flows to enable us to reach our targets without excessive leverage. We will follow a debt-light strategy to fund capital expenditure, relying on our strong cash flow generation to achieve our long-term target," Adani Power had said in October during the September quarter earnings call. For FY25, Adani Power is expecting a capex outgo of about Rs 6,000 crore for acquisitions as well as ongoing project, and organic expansion. For next year, the company is expecting a capex of around Rs 20,000 crore for the same projects.

Promoters and institutional investors like GQG Partners had increased their stake in Adani Power in the September quarter.