India's Adani Energy Solutions to raise up to $1.5 billion

FILE PHOTO: The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad

BENGALURU (Reuters) -India's Adani Energy Solutions said on Monday that its board has approved a fundraise of up to 125 billion rupees ($1.50 billion).

The power distribution company will raise funds via the issuance of shares or other securities by way of qualified institutional placements or through any other permissible mode, it added.

Adani Energy has not specified the reason for the fundraise and the price at which the securities will be issued.The Adani Group's flagship firm Adani Enterprises will also go for fundraise on Tuesday. Business news website Moneycontrol had earlier reported that the two Adani companies - Adani Energy and Adani Enterprises - will collectively approve a fundraising plan in a range of $3.5-4 billion. Adani Enterprises' shares recovered to pre-Hindenburg levels during intraday trade on Friday, the fourth group company stock to do so. The shares, however, ended 4.4% below the pre-Hindeburg level on Monday, while Adani Energy is 60% down compared with the Jan. 24, 2023 level.

Last year, U.S. shortseller Hindenburg in a report accused the group of stock manipulation and improper use of tax havens triggering a sell-off in Gautam Adani's ports-to-power conglomerate.

In the aftermath of the selloff, Adani executives and advisers launched a charm offensive with investors globally, according to the bankers. On a standalone basis, Adani Energy's total borrowings stood at 51.65 billion rupees at the end of fiscal year 2024, almost twice that of the previous year.

($1 = 83.0990 Indian rupees)

(Reporting by Hritam Mukherjee and Ashish Chandra in Bengaluru; Editing by Varun H K and Sohini Goswami)