Adani Enterprises to raise up to Rs 6,000 cr to sustain growth
Adani Enterprises, the flagship company of the Adani Group, said on Tuesday that it plans to raise up to Rs 6,000 crore through issuance of securities to sustain rapid business growth.business Updated: Jul 28, 2015 18:21 IST
Adani Enterprises, the flagship company of the Adani Group, said on Tuesday that it plans to raise up to Rs 6,000 crore through issuance of securities to sustain rapid business growth.
The Gautam Adani-led company also aims to raise its borrowing limit to up to Rs 12,000 crore to keep pace with the expanding business operations.
Adani Enterprises will approach its shareholders with these resolutions later this month at the company's AGM.
"The company proposes to have flexibility to infuse additional capital, to tap capital markets and to raise additional long-term resources, if necessary in order to sustain rapid growth in the business, for business expansion and to improve the financial leveraging strength of the company," it said in a BSE filing.
The filing further said: "The proposed resolution seeks the enabling authorisation of the members to the Board of Directors to raise funds to the extent of Rs 6,000 crore or its equivalent in any one or more currencies... by way of issuance of equity shares... and/or any instruments or securities... and/or convertible preference shares and/or convertible debentures..."
The special resolution also seeks to empower the Board of Directors to undertake a Qualified Institutional Placement (QIP) with Qualified Institutional Buyers (QIBs) as defined by SEBI, it added.
"Further, in view of expanding business operations of the company, it is necessitated to enhance the borrowing limits by authorising Board of the Directors or Committee thereof to borrow monies up to Rs 12,000 crore in excess of and in addition to the paid-up capital and free reserves of the Company... ," the filing said.
It is, therefore, necessary for the members to pass a special resolution... to enable to the Board of Directors to borrow money in excess of the aggregate of the paid up share capital and free reserves of the company, it added.
Shares of Adani Enterprises were trading down by 0.37% at Rs 80.80 apiece on BSE in the morning trade.