Promoters to invest $1,125 million equity in Adani Green

Adani Green Energy Ltd (AGEL) announced this week its Board of Directors has approved a preferential issuance of warrants worth INR 9,350 crore ($1,125 million) to AGEL promoters. The board of the company issued the warrants at a price of INR 1,480.75 per share, calculated basis SEBI ICDR regulations.

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 Jan. 18, 2024.

AGEL will utilize the funds for deleveraging and accelerated capital expenditure.

“AGEL is now fully equipped to achieve its stated target of 45 GW by 2030, with 20.6 GW locked in capacity, secured land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas of India and additional equity infusion of INR 9,350 crore which fully funds this stated target,” stated the company.

With an operating renewable portfolio of 8.4 GW spread across 12 states, AGEL is currently the largest renewable energy developer in India, offsetting over 41 million tonnes of CO2 emissions cumulatively. The company develops, owns, and operates utility-scale grid-connected solar, wind, and hybrid renewable power plants. It targets 45 GW of renewable energy capacity by 2030, aligned with India’s decarbonization goals.

“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 funds infusion, AGEL remains favorably positioned to achieve its accelerated growth trajectory.”

Earlier, AGEL announced $1.36 billion construction facility (by eight leading international banks) for construction of 2,167 MW solar power projects in Khavda, Gujarat, the largest solar park in India. In addition, AGEL has announced $1.425 billion of equity capital ($1.125 billion from preferential issuance by promoters and $300 million from TotalEnergies JV), which translates to a capital raise of $3 billion.

AGEL’s operating portfolio is certified as “water positive for plants of more than 200 MW capacity,” “single-use plastic-free,” and “zero waste-to-landfill.”