Adani Family To Infuse Rs 9,350 Crore In Adani Green As Group Ends 2023 On Strong Note
The equity investment by the promoters will be used to pare debt and fund capital expenditure.
Adani Green Energy Ltd. promoters will invest Rs 9,350 crore ($1.125 billion) into the company to pare debt and fund capital expenditure as the group ends 2023 with renewed confidence.
The board approved an equity infusion via issuance of 6.31 crore warrants on a preferential basis to two promoter firms—Ardour Investment Holding Ltd. and Adani Properties Pvt.—at Rs 1,480.75 per share, according to an exchange filing.
The capital will be used for deleveraging and accelerated growth capex in Adani Green to deliver 45 GW of capacity by 2030, the filing said. The issuance is subject to regulatory and shareholder approvals.
The fresh equity infusion by the promoters mirrors remarkable resurgence for the apples-to-airports conglomerate after the Hindenburg-led crisis. And it came after a string of investments by GGQ Partners and debt repayments. The group has now charted an aggressive energy transition that involves $100 billion worth of investments over a decade across its core infrastructure businesses.
“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," Gautam Adani, chairman of the Adani Group, said in a statement announcing the latest equity investment. "With the funds infusion, AGEL remains favorably positioned to achieve its accelerated growth trajectory."
The company is now "fully equipped" to achieve its stated target of 45 GW by 2030, the filing said. Of this, Adani Green already has already locked in a capacity of 20.6 GW, besides securing land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas of India.
Earlier, the company raised a $1.36-billion facility from eight leading international banks for the construction of 2,167 MW solar power projects in Khavda, Gujarat, the largest solar park in India.
In addition, Adani Green's $1.425 billion worth of equity capital—$1.125 billion from the promoters and $300 million from TotalEnergies to form a joint venture announced in September—translates into a capital raise of about $3 billion within a month.
GGQ Partners initially invested in Adani Green at Rs 504 apiece in February this year when it acquired shares in the company from the promoters. The Rajiv Jain-managed fund further invested at Rs 920 apiece in June, which was followed by Qatar Investment Authority investing at the same price. The promoters are now infusing capital at Rs 1,480.75 apiece.
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