Adani family to invest Rs 9,350-cr in group’s green energy arm

This investment would give the promoter group firms 3.833% equity stake in Adani Green Energy Ltd (AGEL). The board of the company, which has a goal of 45 gigawatts (GW) of green energy capacity by 2030, approved a preferential issuance of warrants to the promoters

New Delhi: Billionaire Gautam Adani and his family will inject Rs 9,350 crore into the conglomerate’s green energy arm to equip it to achieve the 45 GW target by 2030 and to meet debt payment obligations, according to a company filing. The board of Adani Green Energy Ltd (AGEL) on Tuesday approved the plan to issue 6.31 crore warrants at Rs 1,480.75 apiece to promoter group companies, Ardour Investment Holding Ltd and Adani Properties Pvt Ltd. The investment of Rs 9,350 crore “will be used for deleveraging and accelerated capital expenditure” in AGEL, the firm said in the filing.

The investment would give the promoter group firms 3.833 per cent equity stake in the company. AGEL closed at Rs1,599.90, up 4.3 per cent, on the BSE on Tuesday. The company has bond maturities worth $1.2 billion coming up next year and it has already begun outlining plans for repaying or refinancing those. The fund infusion is part of Adani’s comeback strategy, since it was hit by damaging allegations of corporate fraud by Hindenburg Research in January. While the company denied any wrongdoing, Adani group companies lost over $50 billion in market value at the lowest point. Some of that loss has been recovered in months thereafter. The green energy developer already has a Power Purchase Agreement (PPA) tie-up of 19.8 GW (out of 20.6 GW locked in capacity, balance 800 MW being merchant) and land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas.