Adani to raise $1 bn by June next year

New Delhi: Gujarat-based conglomerate Adani Group is looking to raise USD 1 billion by selling 2.5 percent stake in Adani Ports and diluting 5 percent equity in another listed entity Adani Enterprises.

"The company plans to raise USD 1 billion by June 2013 from the stake sale in Adani Port (2.5 percent equity) and from dilution in Adani Enterprises (5 percent equity), a Group official said at an investor conference organised by global investment banking major Morgan Stanley Thursday.

The proceeds would be used to fund the USD 4.2 billion capex on the Australia coal mine and creation of necessary infrastructure, he said.

The coal mine in Galille basin of Australia's Queensland is expected to begin production by January 2015.
The Group also hopes to produce two million tonnes from the Indonesian coal mine and expects production to start by the first week of next month.

The Group also plans to increase the power generation capacity to 20,000 MW by 2020 from 9,200 MW now. The officials said it would not embark on expansion until more clarity on the coal supply in the country is provided.

"Some of the projects could face earnings risk given the low tariffs and lack of coal availability," he added.

The diversified Adani Group, which is into energy, ports, shipping, mining and power generation had said in February that it would invest USD 6 billion in overseas expansion by 2015, primarily in its Australian mining and related assets.

The Adani Group has ports Mundra, Dahej, Hazira, Mormugao and Visakhapatnam and Abbot Point in Australia and has set a target of emerging as the largest port in the country by aiming to handle 200 million tonne cargo by 2020.

PTI