Adani Transmission, Adani Group’s electrical power transmission company, is expected to achieve financial closure of Rs 1,700 crore being raised for its Mumbai transmission line project by July-end. The financing is being provided by a consortium of nine global banks through an international construction facility.
The proceeds would be used to set up a 400 KV substation and transmission lines in Maharashtra. In 2021, the cost of the project was pegged at Rs 2,100 crore, of which the firm is now drawing Rs 1,700 crore, sources close to the development said.
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Adani Transmission, the country’s largest private power transmission and distribution company, is also raising the facility at “competitive” interest rates and tenures. The consortium includes DBS Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation, among others.
In 2019, Adani Transmission received a letter of intent from Maharashtra State Electricity Transmission Company to build, own, operate and maintain a transmission project in the state for 35 years. The project involves developing Mumbai’s first-ever 400 kV substation facility, which was awarded through a tariff-based competitive bidding process.
The project, Kharghar Vikhroli Transmission, comprises 34 km of 400 kV and 220 kV transmission lines, along with a 400kV GIS sub-station at Vikhroli.
The facility is in addition to Adani Transmission‘s plans to raise about ₹8,500 crore through Qualified Institutional Placements (QIP). Earlier, Adani Group flagship Adani Enterprises and Adani Transmission, had announced plans to raise up to a total of ₹21,000 crore through QIP or other modes to secure additional capital for expansion and growth plans.
Adani Enterprises had announced plans to raise up to ₹12,500 crore.
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Adani Green Energy, the renewable energy arm of the group, is also looking to raise funds through a share sale. While the company did not disclose the amount it intends to raise, sources close to the development had told FE earlier that it was looking to raise $500-700 million (₹4,100-5,740 crore), which would be used for capex and paring debt.
A clutch of marquee investors, both Indian and domestic, had shown interest in investing in Adani Group companies’ plans to raise funds by offloading shares through QIPs or other modes.
Abu Dhabi-based International Holding Company, Abu Dhabi Investment Authority, GQG Partners, domestic institutional investors such as the Life Insurance Corporation of India, State Bank of India, general insurance companies and financial firms among others will participate in the group’s fund-raising plans, sources had told FE.
In March, Adani Group sold minority stakes in four listed companies — Adani Enterprises, Adani Transmission, Adani Ports and Special Economic Zone and Adani Green Energy — to American equity investment boutique GQG Partners for ₹15,446 crore.
