Adani Power Board to Consider Raising Up to Rs 5,000 Crore

Adani Power, on October 28, has called for a board meeting and will be sitting down to discuss a plan to raise up to Rs.5,000 crore. Now, this could happen through a public issue or a private placement of non-convertible debentures (NCDs) – basically, a way of saying they’re looking to bring in some serious cash. And they might do this in phases, so the company has something big brewing.

Strategic Timing

What’s interesting is that this discussion is happening right before Adani Power releases its Q2FY25 results. With regulatory approvals and the timing yet to be finalized, this could be a strategic push to expand or tackle existing debts. Either way, it’s a clear signal that Adani Power is looking to strengthen its overall position even more.

Power Moves & Expansion

Adani Power has been on a roll this year. Just a few months ago, they successfully acquired Coastal Energen Pvt. Ltd. for a whopping Rs.3,330.9 crore, merging it with their special-purpose vehicle, Moxie Power Generation Ltd. If that wasn’t enough, they’ve also gone global by setting up Adani Power Middle East Ltd. in Abu Dhabi to explore investments in power and infrastructure across the region.

Financial Performance 

Let’s not forget their Q1FY25 results. Adani Power’s net profit dropped 55.33%, landing at Rs.3,912.79 crore. But here’s the twist,  their revenue shot up 35.89%, hitting Rs.14,955.6 crore. The stock? It’s been trading up 2.13% today at Rs.600.40, up 14.74% year-to-date (YTD), and a massive 92.01% surge in the past year. Safe to say, Adani Power’s had quite the year, even with a few dips.

Conclusion: Wrapping up, with promoters increasing their stake and the market keeping a close watch, all eyes are on Adani Power’s next step. Whether this Rs.5,000 crore boost fuels expansion or shores up its balance sheet, it’s clear that the company is playing for the long term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.