The investment of Rs 9,350 crore "will be used for deleveraging and accelerated capital expenditure" in AGEL.
Billionaire Gautam Adani and his family will inject Rs 9,350 crore into the conglomerate's green energy arm to equip it to achieve the 45 GW target by 2030 and to meet debt payment obligations, according to a company filing. The board of Adani Green Energy Ltd (AGEL) on Tuesday approved the plan to issue 6.31 crore warrants at Rs 1,480.75 apiece to promoter group companies, Ardour Investment Holding Ltd and Adani Properties Pvt Ltd.
The investment of Rs 9,350 crore "will be used for deleveraging and accelerated capital expenditure" in AGEL, the firm said in the filing. The investment would give the promoter group firms 3.833 per cent equity stake in the company. AGEL closed at Rs 1,599.90, up 4.3 per cent, on the BSE on Tuesday.
The company has bond maturities worth USD 1.2 billion coming up next year and it has already begun outlining plans for repaying or refinancing those. The fund infusion is part of Adani's comeback strategy, since it was hit by damaging allegations of corporate fraud by Hindenburg Research in January. While the company denied any wrongdoing, Adani Group companies lost over USD 50 billion in market value at the lowest point. Some of that loss has been recovered in months thereafter.
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The green energy developer already has a Power Purchase Agreement (PPA) tie-up of 19.8 GW (out of 20.6 GW locked in capacity, balance 800 MW being merchant) and land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas. The board of the company, which has a goal of 45 gigawatts (GW) of green energy capacity by 2030, approved a preferential issuance of warrants to the promoters for a quantum of Rs 9,350 crore at a price of Rs 1,480.75 per share.
The issuance is subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the Extraordinary General Meeting (EGM) scheduled on January 18, 2024, a company statement said. Earlier, AGEL had announced a USD 1.36 billion construction facility by eight leading international banks for 2,167 MW solar power projects in Khavda, Gujarat, the largest solar park in India.
In addition, AGEL had announced USD 1.425 billion of equity capital (USD 1.125 billion from preferential issuance by promoters and USD 300 million from TotalEnergies JV), which translates to a capital raising of over USD 3 billion.
This, the firm said, demonstrates the deep interest by long-term investors, strategic partners, financial institutions and banks, coupled with continued promoter commitment, for AGEL's target. "India is on the cusp of becoming a global leader in renewable energy and Adani Green Energy is in the vanguard of this revolution," said Gautam Adani, Chairman of the Adani Group.
"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. "With the infusion of funds, AGEL remains favourably positioned to achieve its accelerated growth trajectory," Adani said.
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