Shares of Adani Power declined by over 3% in early trade on January 27, 2025, following the company’s announcement of an enhanced fundraising plan. The board is set to double its existing fundraising proposal to Rs 11,000 crore through the issuance of non-convertible debentures (NCDs). Additionally, the company plans to raise Rs 5,000 crore through a Qualified Institutional Placement (QIP) or other measures, according to a statement released on January 26.
The board of Adani Power will convene on January 29, 2025, to evaluate and approve the financial results for the quarter and nine months ending December 31, 2024. It will also consider the proposal for raising funds through NCDs, which supersedes an earlier resolution passed on October 28, 2024. The NCDs may be issued via a public or private placement in one or more tranches, subject to approvals. Furthermore, the board will assess the plan to raise Rs 5,000 crore through equity shares or other eligible securities. The equity fundraise could occur via a private placement, QIP, or preferential issue, pending shareholder approval.
Adani Power has reiterated its commitment to a “debt-light” strategy, emphasizing reliance on its strong cash flow generation to fund capital expenditures and meet long-term targets. The company expects a capital expenditure of approximately Rs 6,000 crore in FY25 for acquisitions, ongoing projects, and organic expansions. For the next fiscal year, the capex is anticipated to be around Rs 20,000 crore.
In the September quarter, institutional investors, including GQG Partners, increased their stake in Adani Power, reflecting confidence in the company’s growth trajectory. During the same quarter, the company stated that its existing operations generate sufficient cash flows to support its strategic goals without excessive leverage.
Shares of Adani Power continue to remain under focus as the company moves forward with its fundraising and expansion plans. The board’s decisions on January 29 are expected to provide further clarity on the company’s strategic direction. The stock closed at ₹514.85 previously, with a day range of ₹494.15 – ₹514.85. It has a 52-week range of ₹432.00 – ₹895.85 and a market capitalization of ₹1.92 trillion.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.
