Adani Green Energy Proposes ₹9,350 Crore Equity Warrants Issue to Strengthen Growth, Backed by Promoter Group
In a strategic move to fuel its ambitious growth plans, Adani Green Energy, a prominent player in India’s renewable energy sector, has announced its intention to raise ₹9,350 crore ($1.125 billion) through the issuance of equity warrants on a preferential basis to its promoter group. The decision, revealed in an official exchange filing, underscores the company’s commitment to fortify its financial position and support forthcoming capital expenditures.
The equity warrants are set to be issued at ₹1480.75 per share, providing a substantial capital injection that will be deployed to deleverage the company and facilitate vital capital expenditure initiatives. A noteworthy aspect of this capital raising initiative is the earmarking of approximately 25% of the funds to repay bonds amounting to $750 million, maturing in September 2024, for the holdco company.
As a result of this equity infusion, the promoter stake in Adani Green is expected to rise from 56.373% to 58.046%. The move comes on the heels of Adani Green Energy’s impressive performance in the second quarter, where net profit surged by a staggering 150% due to higher energy sales.
Adani Green Energy is positioning itself as a key player in India’s renewable energy landscape, with an ambitious target of achieving 45 GW of green power by 2030. The company already boasts a secured capacity of 20.6 GW, and with the funds from the equity infusion, it asserts its readiness to meet the stated target. The infusion will also play a pivotal role in financing the development of additional capacity, for which the company has secured land exceeding 2 lakh acres, equivalent to over 40 GW.
Gautam Adani, Chairman of the Adani Group, expressed confidence in India’s trajectory to become a global leader in renewable energy, with Adani Green Energy leading the charge. He emphasized that the funds infusion positions the company favorably to achieve accelerated growth.
This move follows a series of financial maneuvers by Adani Green, including a recent $1.36 billion raised from eight international banks as a construction facility for a 2,167 MW solar power project in Khavda, Gujarat. Additionally, the company has announced a significant equity capital of $1.425 billion, totaling a capital raise of $3 billion.
To formalize this strategic move, an extraordinary general meeting of Adani Green Energy shareholders is scheduled for January 18, where approval for the proposed equity warrants issue will be sought. The proposal has already received the green light from the board, marking a significant step in the company’s pursuit of sustainable and impactful growth in India’s renewable energy sector.