Adani Green Energy announces plans to raise ₹12,300 crore for expansion

India’s leading renewables firm seeks capital infusion through qualified institutional placement and other eligible securities

Mumbai-based Adani Green Energy Ltd (AGEL) revealed on Thursday its intention to raise up to ₹12,300 crore as part of its expansion strategy. The renewable energy company made the announcement following a board meeting, stating that it will seek capital through a qualified institutional placement (QIP) or other eligible securities, as per an exchange filing.

The precise amount of funds to be raised is subject to regulatory and statutory approvals, as well as the endorsement of AGEL’s shareholders through a postal ballot process, according to the filing. The news had a positive impact on the market, with shares of Adani Green rising by as much as 2.6% to ₹972.9 apiece during intraday trading before closing at ₹958 apiece.

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Despite Adani Green’s market capitalization of ₹1.52 trillion, the company’s stock has experienced a 50% decline over the past year, contrasting with the broader market index Nifty 50, which has witnessed a gain of at least 22%.

Earlier reports from May 23 indicated that Adani Green Energy Ltd was engaged in discussions with global fund managers to raise ₹5,000-6,000 crore, marking a revival of the company’s capital expenditure plans following the Hindenburg setback four months ago. The proposed fundraising activities involve the sale of new shares and the divestment of promoter shares, representing 3-4% held by Adani family entities, including group founder Gautam S. Adani through the Shantilal Bhudermal Adani Family Trust.

As per a report, the Adani family trust currently owns 20.76% of Adani Green, while Adani Trading Services Llp and Infinite Trade And Investment Ltd possess holdings of 29.94% and 6.28% respectively.

In January, Adani group companies had temporarily halted their capital expenditure and fundraising plans following a scathing report by US short-seller Hindenburg Research, which accused the conglomerate of stock price manipulation and accounting fraud. The Adani group has vehemently refuted all allegations.

With the renewed focus on capital infusion, Adani Green Energy aims to accelerate its growth trajectory in the renewable energy sector. The company has been actively involved in developing and operating utility-scale wind and solar projects, both in India and abroad. The capital raised through QIP or other eligible securities will provide the necessary financial impetus to bolster its existing portfolio and explore new opportunities, contributing to India’s renewable energy goals and supporting the transition to a sustainable future.