Adani Green Energy Ltd experienced an intraday hike in its shares after the firm announced that its board of directors has given a nod for a preferential issuance of warrants to the company’s promoters, amounting to Rs 9,350 crore (equivalent to $1,125 million). The warrants will be issued at a price of Rs 1,480.75 per share.
Adani Green Energy shares saw a rise of 6.26%, reaching Rs 1630 compared to the previous closing price of Rs 1533.95 on the BSE. The market cap of Adani Green Energy now stands at Rs 2.56 lakh crore. Ultimately, the stock closed 4.30% higher at Rs 1,599.90 on the BSE. The opening on BSE today saw Adani Green Energy stock start higher at Rs 1555.
However, it’s important to note that the issuance of the warrants is subject to approval from regulatory and statutory authorities, as well as the shareholders of the company at the Extraordinary General Meeting (EGM) scheduled for January 18, 2024, according to the firm.
The funds generated from this issuance are earmarked for deleveraging and accelerated capital expenditure. Adani Green Energy is well-positioned to achieve its target of 45 GW by 2030, with 20.6 GW in locked capacity, extensive land holdings exceeding 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas of India, and an additional equity infusion of Rs 9,350 crore, fully financing this stated target.
Gautam Adani, the Chairman of the Adani Group, said that India is at the verge of emerging as a worldwide frontrunner in renewable energy. He underscored Adani Green Energy’s leading role in this transformative movement. Adani highlighted the dedication of the Adani family to achieving India’s objectives in clean energy and facilitating a fair transition in energy. With the injection of funds, Adani Green Energy sustains a positive stance for swift expansion.
In its recent financial report, the Adani Group firm reported a notable 149% rise in Q2 profit at Rs 371 crore, driven by increased power sales compared to Rs 149 crore in the Q2 of the previous fiscal year.
