Adani Green Energy promoters to infuse ₹9,350 crore via preferential issue, stock rises 4%

Adani Green Energy Ltd (AGEL) plans to raise ₹9,350 crore by issuing preferential warrants to its promoters, in a bid to achieve its stated target of 45 gigawatts (GW) green energy capacity by 2030. The investment would be used for deleveraging and accelerating capital expenditure, the company said.

In a stock exchange filing on Tuesday, AGEL said its board has approved a preferential issue of 63.14 million warrants to promoters at ₹1,480.75 each. The warrants would be issued to promoter entities Ardour Investment Holding Ltd and Adani Properties Pvt. Ltd, and would constitute 3.833% of the share capital of AGEL.

AGEL, which develops, owns, and operates utility-scale grid-connected solar, wind and hybrid renewable power plants, currently has 20.6 GW locked-in capacity, and has secured land of over 200,000 acres for expansion.

A separate statement from the company said the investment from the promoters is subject to the approval of regulatory and statutory authorities, besides that of shareholders at an extraordinary general meeting (EGM) scheduled on 18 January 2024.

Noting that India is on the cusp of becoming a global leader in renewable energy, Gautam Adani, the chairman of the Adani Group, said in the media statement: “This investment by the Adani family underscores our commitment, not only to making our nation’s clean energy dream a reality but also to an equitable energy transition where we phase down traditional power sources while simultaneously phasing up green, affordable alternatives to fuel our accelerating growth and development plans.”

The announcement lifted AGEL’s share price by over 4% on BSE to close at ₹1,599.90 on Tuesday.

Shares of the company tumbled nearly 80% from its 52-week high of ₹2,185.30 per share on 18 January 2023 on BSE, to a 52-week low of ₹439.35 a share on 28 February, after the Hindenburg report released in late January accused the Adani Group of improper use of offshore tax havens and flagged concerns about high debt. The group has steadfastly rejected the claims, describing them as “targeted misinformation and outdated, discredited allegations”.

Earlier this month, AGEL announced a $1.36 billion facility through funding from eight international banks, for the construction of 2,167 megawatts (MW) of solar power projects in Khavda, Gujarat. It also announced a $1.425 billion equity capital injection ($1.125 billion from preferential issuance by promoters, and $300 million from its joint venture with France’s TotalEnergies).

In the September quarter, the renewable energy company reported a 49% year-on-year jump in its consolidated net profit to ₹372 crore. As of 30 September 2023, its net debt stood at ₹38,190 crore, compared to ₹40,455 crore on 30 March 2023, according to the company’s investor presentation released on 30 October.