Azure Power India seeks more time to file audited results

All the Azure group companies have delayed filing their annual audited results following whistle-blower complaints alleging potential procedural irregularities and misconduct by certain employees at a plant of one of its subsidiaries. The Ontario Municipal Employees Retirement System and CDPQ-backed renewable power producer published unaudited results for FY22 on December 30 but added that its audited report may differ from unaudited.

Sangita Mehta
  • Updated On Feb 20, 2023 at 09:26 AM IST
Azure Power India is seeking an extension from local banks to file audited results for FY22 in a move aimed at avoiding a breach of loan covenants, said two people aware of the matter.

The development comes within days of its parent company, Azure Power Global, receiving an extension from the New York Stock Exchange until mid-July to submit an audited report for FY22, averting a possible stock delisting.

All the Azure group companies have delayed filing their annual audited results following whistle-blower complaints alleging potential procedural irregularities and misconduct by certain employees at a plant of one of its subsidiaries. The Ontario Municipal Employees Retirement System and CDPQ-backed renewable power producer published unaudited results for FY22 on December 30 but added that its audited report may differ from unaudited. It reported an operating profit of ₹420 crore against a gross debt of ₹2,800 crore.

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Azure Global's shares at NYSE fell 41% in the intraday session after it announced the resignation of CEO Harsh Shah within two months of joining, as reported by ET on August 30, 2022. Shah resigned within days of the company expressing its inability to file the FY22 audited results within the SEC stipulated deadline of August 1, 2022.

Although the Azure management has not committed to a specific timeline for releasing the audited results, timely submission of annual results is a covenant in Azure's funding lines, and a breach could result in lenders exercising their right to recall the loan facilities.

Azure did not reply to ET's request for comment. While some local lenders had extended the deadline to the end of February, others had given time until the end of March, one of the persons cited above said. Azure Power India has initiated talks with Canara Bank, Yes Bank, IDBI Bank, DBS Bank, DCB Bank, Bank of Baroda, IndusInd Bank, Axis Bank, ICICI Bank and HSBC, one of the persons cited above said. Local banks are likely to extend the deadline in line with the NYSE, the person said.

Azure Power India has long-term debt of ₹1,303 crore and a bank guarantee of ₹700 crore. In August 2021, Azure Power Energy raised $414 million in green bonds at a coupon of 3.575% maturing in August 2026, while its parent - Azure Power Global - in September 2019, raised $350 million in bonds at a coupon of 5.65% maturing in December 2024.

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  • Published On Feb 20, 2023 at 09:26 AM IST
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