Promoters to Invest INR 9,350 crore equity in Adani Green

Adani Green Energy Ltd (AGEL), recognized as India’s foremost renewable energy developer and a global leader in the sector, has disclosed a strategic move to reinforce its financial standing. The Board of Directors of AGEL has given the green light to a preferential issuance of warrants to the company’s promoters, amounting to INR 9,350 crore (equivalent to USD 1,125 million) at a per-share price of INR 1,480.75. This decision is contingent upon obtaining approvals from regulatory and statutory bodies, as well as from the shareholders at the Extraordinary General Meeting scheduled for January 18, 2024. The capital raised is earmarked for deleveraging and expediting capital expenditure.

With a solid foundation comprising 20.6 GW in secured capacity, vast land holdings exceeding 2,00,000 acres (equivalent to over 40 GW additional capacity) in resource-rich areas of India, and an additional equity infusion of INR 9,350 crore, AGEL is now fully geared towards accomplishing its ambitious target of achieving 45 GW by 2030.

Mr. Gautam Adani, Chairman of the Adani Group, emphasized the pivotal role AGEL plays in India’s transition to renewable energy, stating, “India is on the cusp of becoming a global leader in renewable energy, and Adani Green Energy is in the vanguard of this revolution.” He underscored the Adani family’s commitment to realizing the nation’s clean energy aspirations and facilitating an equitable energy transition.

The funds obtained through this issuance will further fortify AGEL’s position as it works towards its accelerated growth trajectory. AGEL recently secured a USD 1.36 billion construction facility from eight leading international banks for a colossal 2,167 MW solar power project in Khavda, Gujarat, marking the largest solar park in India. Additionally, the company has announced a total equity capital infusion of USD 1.425 billion, comprising USD 1.125 billion from the preferential issuance by promoters and USD 300 million from the TotalEnergies joint venture. This brings the total capital raise to approximately USD 3 billion, highlighting the substantial interest from long-term investors, strategic partners, financial institutions, and banks.

AGEL, boasting an operational renewable portfolio of 8.4 GW across 12 states, is committed to offsetting over 41 million tonnes of CO2 emissions cumulatively. The company’s focus on technology-driven solutions aims to reduce the Levelized Cost of Energy (LCOE) and promote the widespread adoption of affordable clean energy. AGEL’s operating portfolio holds certifications for being “water positive for plants of more than 200 MW capacity,” “single-use plastic-free,” and “zero waste-to-landfill,” showcasing its dedication to sustainable growth.