Adani Green Energy receives Rs 9,350 crore equity boost from promoters

Adani Green Energy Ltd (AGEL), India's and the world's leading renewable energy developer, is set to receive a substantial equity infusion of Rs 9,350 crore (approximately $1,125 million) from its promoters. The Board of Directors of AGEL has approved a preferential issuance of warrants to the promoters at a per share price of Rs 1,480.75 per share, subject to regulatory approvals and shareholder nod at the Extraordinary General Meeting (EGM) scheduled for January 18, 2024. The funds will be utilised for deleveraging and accelerating capital expenditure.

With this infusion, AGEL is well-positioned to achieve its ambitious target of 45 GW by 2030. The company currently boasts a locked-in capacity of 20.6 GW, secured land exceeding 2,00,000 acres (equivalent to over 40 GW additional capacity) in resource-rich areas of India, and an additional equity injection of Rs 9,350 crore, fully funding the stated target.

Gautam Adani, Chairman of the Adani Group, emphasised India's emergence as a global leader in renewable energy and AGEL's pivotal role in this revolution. He stated, "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 fund infusion, AGEL remains favorably positioned to achieve its accelerated growth trajectory."

Earlier, AGEL had announced a $1.36 billion construction facility for the development of 2,167 MW solar power projects in Khavda, Gujarat, marking the largest solar park in India. The company has also unveiled $1.425 billion of equity capital, including $1,125 billion from the preferential issuance by promoters and $300 million from the TotalEnergies JV, resulting in a total capital raise of approximately $3 billion.

This strategic move reflects the deep interest from long-term investors, strategic partners, financial institutions, and banks, combined with the unwavering commitment of the promoters. AGEL is steadfast in its mission to add 45 GW of renewable capacity in India by 2030, aligning with the nation's clean energy aspirations and contributing significantly to the global shift towards sustainable alternatives.