According to a company filing, billionaire Gautam Adani and his family will invest Rs 9,350 crore in the conglomerate’s green energy division to help it meet debt payment obligations and reach the 45 GW target by 2030. The plan to issue 6.31 crore warrants for Rs 1,480.75 each to the promoter group companies, Ardour Investment Holding Ltd and Adani Properties Pvt Ltd, was approved by the board of Adani Green Energy Ltd (AGEL) on Tuesday.
According to the company’s filing, the Rs 9,350 crore investment “will be used for deleveraging and accelerated capital expenditure” in AGEL. The promoter group companies would own 3.833 percent of the company after the investment. AGEL ended Tuesday’s trading session on the BSE at Rs 1,599.90, up 4.3%. The business has started laying out plans for repaying or refinancing $1.2 billion in bond maturities that are coming up in the upcoming year.
The infusion of funds is a component of Adani’s strategy for recovery, following the damaging accusations of corporate fraud made by Hindenburg Research in January. At its lowest point, the Adani group of companies’ market value dropped by more than $50 billion, despite the company’s denials of any misconduct. In the months that followed, some of that loss was regained.
The renewable energy developer already has land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas and a Power Purchase Agreement (PPA) tie-up of 19.8 GW (out of 20.6 GW locked in capacity, balance of 800 MW being merchant).
The company’s board authorized the preferential issuance of warrants to the promoters for a total of Rs 9,350 crore for Rs 1,480.75 per share. The company aims to have 45 gigawatts (GW) of green energy capacity by 2030.
A company statement stated that the issuance is contingent upon approval from regulatory and statutory authorities, as well as the company’s shareholders at the Extraordinary General Meeting (EGM) on January 18, 2024.
AGEL had earlier disclosed that eight of the top international banks were providing a $1.36 billion construction facility for 2,167 MW of solar power projects in Khavda, Gujarat, the largest solar park in India. Additionally, AGEL announced the announcement of $1.425 billion in equity capital, or more than $3 billion in capital raised ($1.125 billion from preferential issuance by promoters and $300 million from TotalEnergies JV).
According to the company, this shows how deeply long-term investors, banks, strategic partners, financial institutions, and promoters are interested in AGEL’s target. Gautam Adani, Chairman of the Adani Group, stated, “India is poised to emerge as a global leader in renewable energy, and Adani Green Energy is at the forefront of this revolution.”
“With the infusion of funds, AGEL remains favorably positioned to achieve its accelerated growth trajectory,” Adani said. “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.”