The Adani Group is seeking shareholder approval to raise Rs 16,000 crore between the three group companies, Adani Enterprises, Adani Power and Adani Ports and Special Economic Zone (APSEZ), through specified financial instruments in the foreign or domestic market.
The companies are seeking the funds to infuse additional capital by tapping capital markets. They also said they need additional long term resources ?if necessary in order to sustain rapid growth in the business, for expansion and to improve the financial leveraging strength of the company”.
Adani Enterprises, the flagship company of the Group, is planning to raise Rs 6,000 crore while the remaining two companies seek investor nod for R5,000 crore each, according to resolutions filed prior to the annual general meetings of the companies to be held in August.
The board of the companies said they are looking to raise the money through either of the channels ? global depository receipts (GDRs), American depository receipts (ADRs), warrants, foreign currency convertible bonds (FCCBs) or foreign currency exchangeable bonds (FCEBs).
The resolutions also seeks to empower the board to raise the funds via a Qualified Institutional Placement route.
Separately, APSEZ has sought shareholders’ nod to increase the borrowing limits of the company to R25,000 crore from the R20,000 crore set at present.
The company, in its 2013-2014 annual report, said, “In view of expanding business operations of the company, it is necessitated to enhance the borrowing limits by authorising the board of directors or committee thereof to borrow monies upto R25,000 crore”.
