Commodity trading company Adani Enterprises, part of the $5-billion Adani Group, has raised around $850 million (Rs 4,000 crore) through sale of shares to private equity firms at Rs 536 per share.
The proceeds will be used for acquiring and developing coal assets in Australia, India and South Africa.
Fund raising has lead to the stake dilution of around 4 per cent to Blackrock, Fidelity and a fund of Reliance.
The sale was managed by Citigroup, Bank of America Merrill Lynch, Morgan Stanley, UBS, IDFC Capital, Enam Securities, ICICI Securities and Kotak Mahindra Capital.
“The company is in advanced stage to acquire coal mines from Linc Energy in Queensland in Australia, which has a total capacity of over 5 billion metric tonnes of coal,” a source close to the development told HT. “The company is also looking for mines in South Africa and India,” he added.
Acquisition of coal mines is part of long-term strategy for the diversified Adani Group, which has interest in infrastructure, power and trading. Apart from using coal for their own use, the company will also sell it to other players.
“Coal will be used for the company’s existing power plant in Mundra, Gujarat and other power projects,” said the source.
Adani Power, which last year raised $630 million (Rs 2,900 crore) in an IPO, is developing several thermal power projects in the country. The company is also planning a new power plant of around 3,300 megawatt in Mundra near its existing power plant. It wants to ensure regular coal supply in future, which is currently being imported.
Adani has also been able to get one of the terminals in a port of Queensland on lease for 99 years, which has coal-handling capacity of 60 million tonnes.