MUMBAI: Credit rating firm CARE has issued a monitoring agency report on Adani Transmission’s Rs 8,873 crore raised via the QIP route in Aug 2024. According to the report, the company, now known as Adani Energy Solutions, deviated from the qualified institutional placement’s stated objectives.It diverted funds earmarked forsmart meters to transmission systems — up to 10% of the money designated for installation of meters was redirected to transmission capex requirements.
Though this deviation (up to 10%) is within the materiality threshold, it still requires formal disclosure and audit committee review, said a lawyer. Any deviation beyond 10% from the stated objects in the offer document may be considered material and might require shareholder approval, he added. The CARE report noted that Adani Energy spent about Rs 175 crore more than the planned expenditure in its transmission segment.
“This amount (of Rs 175 crore) was utilised from the funds allocated towards the purchase and installation of smart meters,” read the report, disclosed by the company to the stock exchanges.
In their comments, the company’s board of directors, chaired by Gautam Adani, said the over utilisation was necessary due to the growth in the transmission project capex outlay, which increased to Rs 60,000 crore by the end of fiscal 2025.
In the QIP offer document, the company had outlined Rs 2,060 crore for expansion in transmission systems, Rs 1,800 crore for installing smart meters, Rs 2,420 crore for repaying borrowings, Rs 2,031 crore for general corporate purposes, and Rs 63 crore for issue-related expenses. By March 31, 2025, it utilised Rs 2,235 crore on transmission projects, Rs 916 crore on smart meter installations, and the balance on other stated purposes.
Sebi rules require companies to strictly monitor and clearly disclose how funds raised through public issues are spent.