India’s Adani Energy Solutions plans to raise $1.5bn for expansion

Adani Energy Solutions (AESL), part of Indian conglomerate the Adani Group, has announced its intention to raise $1.50bn for expanding its business.

The company aims to raise the money through qualified institutional placement or another permissible mode, in one or more tranches. The fundraising effort is contingent upon approvals including the consent of company members at the Annual General Meeting on 25 June 2024.

AESL, a key player in India’s power transmission sector, has set ambitious targets to establish 30,000 circuit kilometres (ckm) of transmission lines by 2030. The company’s distribution arm, Adani Electricity Mumbai Limited, is the largest private-sector power distribution utility in India, meeting a 2GW power demand in Mumbai, Maharashtra.

The company has also ventured into the smart metering business to enhance the operational and financial efficiency of distribution companies.

Leveraging its expertise in Mumbai and Mundra, AESL seeks to transition from a service provider to an integrated solution platform.

It has acquired a 100% stake in Essar Transco, valued at $227.5m, in an expansion of its transmission capabilities.

The deal includes a 400kV, 673ckm interstate transmission line linking Mahan in the state of Madhya Pradesh to the Sipat pooling substation in the state of Chhattisgarh.

In May 2024 AESL secured a 20-year power purchase agreement with Sri Lanka, following approval in February 2023 to invest $442m in the construction of wind projects with a combined capacity of 484MW.