On Tuesday, Adani Green Energy announced that its promoters would use preferential warrant issuance to invest Rs 9,350 crore in the company. Each warrant will be issued for the sum of Rs 1,480.75.
According to a press release from the company, the money will mostly be used to finance capital expenditures and deleverage the balance sheet.
Investors were encouraged by the fundraising plan, and shares of Adani Green Energy saw an extension of the day’s gains. The stock hit Rs 1,600 after rising 4%.
The issuance of warrants to promoters is contingent upon shareholder approval, a matter that Adani will discuss at an extraordinary general meeting on January 18.
As we accelerate our growth and development plans, we will phase down traditional power sources while simultaneously phasing up green, affordable alternatives. This investment by the Adani family demonstrates our commitment to both realizing our nation’s dream of clean energy and to an equitable energy transition, according to Gautam Adani, Chairman of the Adani Group.
Adani stated that Adani Green is well-positioned to fulfill its accelerated growth trajectory with the infusion of funds.
In the past, Adani Green revealed plans to build the largest solar park in India, located in Khavda, Gujarat, with a $1.36 billion facility to generate 2,167 MW of solar power.
Furthermore, the business disclosed $1.43 billion in equity capital ($1.13 billion from promoter preferential issuance and $300 million from TotalEnergies JV), resulting in a $3 billion capital raise.
With 20.6 GW of locked-in capacity, over 2,00,000 acres of secure land in resource-rich areas of India, and an additional equity infusion of Rs 9,350 crore, which fully funds this stated target, Adani Green is fully equipped to achieve its stated target of 45 GW by 2030, the company said.
According to Bloomberg News last week, which cited people who knew the internal discussions, the first-generation entrepreneur and his family intend to inject $1 billion into Adani Green through preferential shares, while the company plans to raise at least $2 billion in new debt next year.
As the company plots aggressive growth plans and gets ready for bond repayments next year, billionaire Gautam Adani’s renewable energy unit received board approval to raise as much as Rs. 93.5 billion ($1.12 billion) by issuing share warrants to its founders.
The Adani Group’s company announced that its board of directors had approved the preferential issuance of warrants to the company’s promoters for a sum of Rs 9,350 crore, or $1,125 million, causing shares to be worth Rs 1480.75. Shares of Adani Green Energy rose 6.26% to Rs 1630 on the BSE, up from the previous close of Rs 1533.95. Adani Green Energy’s market capitalization was Rs 2.56 lakh crore. A total of 4.22 lakh shares were traded, generating a revenue of Rs 66.74 crore. Afterward, the BSE saw the stock close 4.30% higher at Rs 1599.90. On the BSE today, Adani Green Energy’s stock opens higher at Rs 1555.
