Adani Enterprises may pump in Rs 1,450 crore ($300 million) into Adani Power Maharashtra Ltd(APML) over a period of time. APML, a subsidiary of 3i-backed Adani Power which is slated for a public float soon, is implementing 1,980 MW power project in Maharashtra for Adani Power.
Adani Power (in which public listed Adani Enterprises holds 83.12% which will come down to 70.25% post IPO) in turn holds 76.64% in APML. Other existing investors in APML include Millennium Developers and Somerset Emerging Opportunities Fund.
Millennium had signed an agreement in January 2008 to acquire upto 26% in APML but holds 12.43% in the firm as of March 31, 2009. Somerset, which figures as a sub account holder under the FII licence of ace investor Marc Faber according to SEBI’s list of foreign investors, had struck a deal with Adanis in March 2009 to invest Rs 100 crore ($20 million) into APML through multiple tranches. It has already brought in Rs 33 crore to pick shares (believed to be at par) and holds 10.93% in APML.
Now, Adani Enterprises has sought approval from its shareholders to invest from time to time by way of subscription, purchase, conversion or otherwise equity shares, preference shares, debentures (whether convertible or non-convertible) or any other financial instruments of APML to the extent of Rs 1,450 crore.
Meanwhile, as per disclosures made by Adani Power in its revised draft prospectus to SEBI, Adani Power has modified the original shareholders agreement (dated September 2007) with 3i. The new agreement set out April 23, 2009 as the deadline for the proposed IPO of Adani Power on terms acceptable to 3i, failing which the investment agreement was to be reinstated. Further, it also said just before IPO the preference shares held by 3i will be converted into equity shares. This was again amended early this month (April 14, 2009) which extended the above mentioned deadline for the IPO to June 30, 2010.