Shares of Adani Energy Solutions Ltd (AESL) will be in focus during the trading session on Monday ahead of the company's board meeting to consider and approve the fundraising plans. The company informed the exchanges about the board meeting through exchange filing last week.
Adani Energy Solutions said its board will meet on Monday to consider and approve the fundraise proposal. This raise could be by way of issuance of equity shares or any other eligible securities through permissible modes. The modes include private placement, qualified institutional placement, preferential issue, or any other method or combination of methods, said the filing.
The proposal, however, shall be subject to the necessary regulatory and statutory approvals, as well as the approval of the company's shareholders. AESL has been actively raising funds through various financial instruments. and the fundraising efforts are part of the Adani Group firm's strategy to finance its expansion and ongoing projects in the energy sector.
Shares of Adani Energy Solutions settled at Rs 1105.90 on Friday, rising 0.60 per cent for the day. The total market capitalization of the company stood around Rs 1.25 lakh crore at the close of the session.
According to some reports, Adani Energy Solutions is planning to raise up to $600 million to fund smart meter projects in electricity. The company is in talks with a group of global lenders for a foreign currency loan, which could have a tenor ranging from three to five years.
In the March 2024 quarter, Adani Energy Solutions reported a net profit of Rs 381 crore with a revenue from operations of Rs 4,706.85 crore. The Adani Group's power transmission arm reported a net profit of Rs 890.63 crore with a revenue of Rs 16,607.36 crore in the financial year 2023-24.
Last week, Adani Energy Solutions completed acquisition of 100 per cent stake in Essar Transco Limited, through its wholly owned subsidiary Adani Transmission Step-Two Limited (ATSTL) Essar Transco houses operational Mahan-Sipat transmission assets for an enterprise value of Rs 1,900 crore.
Adani Energy Solutions, formerly known as Adani Transmission Ltd, is a significant player in the power transmission sector in India. The company has expanded its portfolio to include a variety of energy solutions, such as High Voltage Direct Current (HVDC) systems, solar energy projects, and smart metering.