Adani Energy Solutions' board Approves Raising ₹4,300 Cr ( ~ $502 Mn)

Adani Energy Solutions' board has approved raising ₹4,300 crore ($502 million) through Qualified Institutional Placement (QIP) or other modes, in one or more franches, said an exchange filing, as reported by Bloomberg.

This move is part of the company’s broader strategy to strengthen its financial position and support ongoing infrastructure projects.

The company has been steadily regaining investor confidence, with Fitch Ratings recently removing Adani Energy from a rating watch and assigning a negative outlook, citing moderating liquidity risks.

In April, Adani Group raised $750 million for an acquisition, with BlackRock Inc. subscribing to about a third of the bond issue. Additionally, its ports unit secured $150 million from DBS Group Holdings Ltd. through a bilateral loan. Last year in May, the company approved a ₹12,500 crore fundraise through Qualified Institutional Placement (QIP) and other modes.

This latest ₹4,300 crore fundraise is smaller than the ₹12,500 crore effort from last year but aligns with Adani Energy’s strategy of gradual capital infusion to support ongoing projects. The company has been steadily regaining investor confidence after earlier scrutiny, and this move reinforces its financial stability.

Additionally, the board has appointed Kandarp Patel as the Whole Time Director & CEO for a three-year term starting May 31, 2025. It also approved the appointment of Hemant Nerurkar, Amiya Chandra, and Chandra lyengar as Non-Executive Independent Directors for three year.

Kenyan Court Suspends Adani Energy's $736 Mn Deal

Kenyan high court has suspended a $736 million (approximately ₹6,189 crore) deal between the state-owned Kenya Electricity Transmission Company (KETRACO) and Adani Energy Solutions. The agreement, signed earlier this month, aimed to build and operate high-voltage power transmission lines over a 30-year period.

The Law Society of Kenya challenged the deal, arguing that it was a "constitutional sham" and lacked transparency. They also claimed that there was insufficient public participation in the project, which is required under Kenya's Public-Private Partnerships Act of 2021.

This suspension could have significant implications for Kenya's energy infrastructure and foreign investment climate. The court's decision adds uncertainty to the partnership, which was intended to address power outages and support economic growth in the country.

As of now, Gautam Adani or the Adani Group has not publicly commented on the Kenyan court's suspension of the $736 million deal. The situation is still developing, and it's likely that the Adani Group will issue a statement or response in the near future.

Apart from this deal, the Adani Group's proposal to operate Kenya's main airport, Jomo Kenyatta International Airport (JKIA), for 30 years was also challenged and eventually suspended in court, last month. The Law Society of Kenya and the Kenya Human Rights Commission argued that the deal was unaffordable, threatened job losses, and lacked transparency. The court blocked the proposal, citing concerns about good governance and accountability.

The Law Society of Kenya has raised issues about the lack of meaningful public participation in the agreements with Adani Group, which is required under Kenya's Public-Private Partnerships Act of 2021.

These disputes highlight the challenges and scrutiny faced by the Adani Group in its efforts to expand its infrastructure projects in Kenya.

Adani Energy Solutions Plans Raising ₹50 Billion via QIP

Gautam Adani's power transmission unit, Adani Energy Solutions Ltd. (AESL), is considering raising at least 50 billion rupees (approximately $597 million) through a qualified institutional placement (QIP), said a report by Bloomberg. This move marks the Indian conglomerate's first entry into public equity markets since a scathing short-seller's report significantly impacted shareholder value.

Citing people privy to the development, the Bloomberg report further said that Adani Energy is looking to bring in more institutional investors, including some from the US, through the share sale. Such an expansion of investor base is also an attempt to draw more research analysts to cover the firm.

AESL operates over 21,100 circuit kilometers (ckm) of transmission lines and has a target of ramping up to 30,000 ckm by 2030 through both organic and inorganic growth opportunities. Despite challenges, this QIP represents a powerful vote of investor confidence in the Adani Group and its recovery from the Hindenburg attack.

In May, Adani Energy Solutions Ltd. received board approval to raise up to ₹12,500 crore through various modes. This capital infusion is part of their strategic growth plans and recovery efforts following the Hindenburg attack.

Adani Group's return to public fundraising represents a significant milestone in their recovery journey. It reflects investor confidence and resilience following the Hindenburg attack.

The Hindenburg attack refers to a critical report published by the short-selling firm Hindenburg Research in June 2021. The report targeted the Adani Group, specifically its power transmission companies, including Adani Transmission and Adani Energy Solutions.

The report significantly impacted the Adani Group's market value, erasing up to $153 billion from the Indian conglomerate's valuation. However, it's interesting to note that Hindenburg's financial gains from this were relatively small, totaling just over $4 million. Since then, shares and bonds of Adani Group companies have swung wildly but have gradually recovered ground. As of now, the group's market value stands at approximately $205 billion, which is about $30 billion short of its pre-Hindenburg level.

The recent share sale by AESL, via QIP, represents the Group's efforts to recover from the impact of the Hindenburg attack.

However, it is to be noted that details of the fundraising, including size, could still change as the fundraise efforts are ongoing.

Adani Energy Solutions Board Approved Fundraise of Up to Rs 12,500 Crore ($1.50 Billion)

Adani Energy Solutions Limited (AESL) has approved a significant fundraise. The board has given the green light to raise up to Rs 12,500 crore (approximately $1.50 billion). This fundraising is planned to be executed through various permissible modes, which may include a Qualified Institutional Placement (QIP) or other methods.

The company has stated that this move is subject to receiving the necessary approvals at the upcoming Annual General Meeting (AGM), which is scheduled for June 25, 2024. It's a substantial step for Adani Energy Solutions, reflecting their strategic financial planning and growth initiatives.

After the corporate announcement, shares of Adani Energy settled 0.17% lower at Rs 1,104.05. This slight decline indicates that investors are closely monitoring the situation.

The Adani Group's power distribution company, in a notice to BSE last week, said its board will meet on Monday to consider and approve the fundraise proposal. While the specific reasons for this fundraise have not been explicitly stated, there are several potential factors that could contribute to the decision.

Adani Energy Solutions may be planning to expand its operations, invest in new projects, or enhance its existing infrastructure. The funds raised could support these growth initiatives.

The company might require additional capital for capital expenditure (CapEx) related to energy projects, including setting up new power plants, transmission lines, or distribution networks.

In another possible reason, companies often raise funds to repay existing debt or refinance high-cost debt. Adani Energy Solutions may use part of the proceeds to reduce its borrowings.

The funds could also be earmarked for strategic investments in related sectors or technologies. For instance, investing in renewable energy sources or exploring new business opportunities.

Adequate working capital is crucial for smooth operations. The company may allocate a portion of the funds to meet short-term operational requirements.

Besides all, a substantial fundraise can enhance the company's financial position, improve credit ratings, and boost investor confidence.

In a nutshell, while the specific reasons remain undisclosed, Adani Energy Solutions' fundraise aligns with its growth strategy, financial needs, and market dynamics. The upcoming Annual General Meeting (AGM) on June 25, 2024 will provide further clarity on the utilization of these funds.

Airtel Business to Power 20 Mn Smart Meters for Adani Energy Solutions with Its Smart IoT solutions

Airtel Business – the B2B arm of Bharti Airtel, one of India’s leading telecommunications service providers – today announced that it will power over 20 million smart meters for Adani Energy Solutions Limited (AESL).

Airtel, through its robust nationwide communications network will deliver reliable and secure connectivity for all AESL’s smart meter deployments. In addition, Airtel’s transformative smart metering solutions that are powered by NB-IoT, 4G and 2G, will help AESL to ensure real-time connectivity and uninterrupted transfer of critical data between smart meters and headend applications. The solution will also come powered with Airtel’s IoT platform - ‘Airtel IoT Hub,’ which enables smart meter tracking and monitoring with advanced analytics and diagnostic capabilities in addition to real-time insights and services that empower customers with enhanced control over their energy consumption. Adani Energy Solutions has an order book of over 20 million smart meters from the power utilities of Assam, Andhra Pradesh, Bihar, Maharashtra and Uttarakhand.

Ganesh Lakshminarayanan, CEO - Airtel Business (India), said, “India’s smart metering programme is one of the most significant policy reform measures undertaken by the Government. These meters are critical building blocks for smart grids and fundamental enablers for the digitalization of the power sector. Airtel expects its NB-IoT technology to play a significant role in the Utilities space to connect and manage smart meters at scale with enhanced coverage, high reliability and security. We look forward to a long and fruitful association with the Adani Group, supporting them in their endeavours to digitize utilities”.

Kandarp Patel, CEO - Adani Energy Solutions Ltd., said, “India’s ambitious Revamped Distribution Sector Scheme (RDSS) is transforming the way we deliver power, and AESL is proud to be at the forefront of this revolution. Our partnership with Airtel marks a critical step towards realising the vision of a smarter, more efficient grid for all. This strategic tie-up leverages the best of both worlds: our deep domain expertise in the T&D sector and Airtel's robust nationwide network and comprehensive suite of IoT offerings, including NB-IoT and 4G LTE. This powerful combination will enable us to seamlessly deploy our current order book of over 20 million smart meters across India, empowering millions of consumers with real-time consumption data and control, while simultaneously driving down inefficiencies in the distribution network”.

Headquartered in India, Airtel is a global communications solutions provider with over 500 million customers in 17 countries across South Asia and Africa. The company ranks amongst the top three mobile operators globally and its networks cover over two billion people. Airtel is India’s largest integrated communications solutions provider and the second largest mobile operator in Africa. Airtel’s retail portfolio includes high-speed 4G/5G mobile broadband, Airtel Xstream Fiber that promises speeds up to 1 Gbps with convergence across linear and on-demand entertainment, streaming services spanning music and video, digital payments and financial services. For enterprise customers, Airtel offers a gamut of solutions that includes secure connectivity, cloud and data center services, cyber security, IoT, Ad Tech and cloud-based communication. For more details, visit www.airtel.com/

Adani Energy To Extract 7GW Energy from the World's Largest RE Park Into National Grid

Adani Energy Solutions to build 7 GW renewable energy evacuation transmission network

• Over 300 km, Rs 3,000 cr project will evacuate 7GW of energy from Khavda RE park into national grid
• AESL to build, own, operate & maintain transmission project for a period of 35 years
• AESL now has 20,518 ckm of transmission lines and 53,161 MVA of transformation capacity

Adani Energy Solutions Limited (AESL), a part of the globally diversified Adani portfolio and India’s largest private transmission and distribution company today said it has received the letter of Intent (LoI) for the acquisition of Halvad Transmission Ltd. from PFC Consulting Limited (PFCCL).

Halvad Transmission Ltd., a special purpose vehicle (SPV), was set up by PFCCL for evacuating 7 GW of renewable energy (RE) from the Khavda RE park. AESL acquired it through a tariff-based competitive bidding (TBCB) process and will commission it in 24 months on BOOM (Build, Own Operate, and Maintain) basis.

The world's largest green energy park covering 726 sq km in the Rann desert is visible even from space

The world’s largest RE park, with a generation capacity of 30,000 MW of green energy, is coming up at Khavda, Gujarat. The Halvad transmission line, part of national grid, will help evacuate 7GW of RE by connecting Khavda to Halvad, also in Gujarat.

AESL will invest around Rs 3,000 crore to build, own, operate and maintain the over 301 km (656 ckm) transmission project for a period of 35 years. The project includes setting up of a 765 kV Halvad switching station with 2x330 MVAr bus reactors and a line-in line-out of Lakadia–Ahmedabad 765 kV D/c line at Halvad.

Mr. Anil Sardana, MD, Adani Energy Solutions Ltd., said, “AESL is committed to partnering with the government and developers of renewable energy to expedite efficient evacuation of renewable energy from the generating regions. The 7GW project will go a long way in making additional renewable energy available to consumers. We will use the latest technology to commission this project with minimal environmental impact.”

Winning this project consolidates AESL’s market-leading position and takes its network (installed and under-commissioning) to 20,518 ckm and 53,161 MVA of transformation capacity.

About Adani Energy Solutions Limited (AESL):

AESL, part of the Adani portfolio, is a multidimensional organization with presence in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. AESL is the country’s largest private transmission company, with a presence across 16 states of India and a cumulative transmission network of 20,518 ckm and 53,161 MVA transformation capacity.

In its distribution business, AESL serves more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. AESL is ramping up its smart metering business and is on course to become India’s leading smart metering integrator. AESL, with its integrated offering through the expansion of its distribution network through parallel licenses and competitive and tailored retail solutions, including a significant share of green power, is revolutionizing the way energy is delivered to the end consumer. AESL is a catalyst for transforming the energy landscape in the most reliable, affordable, and sustainable way.