India's largest renewable energy developer Adani Green Energy Ltd on Tuesday said its board has approved a preferential issuance of warrants to the promoters of the company for ₹9,350 crore at ₹1,480.75 per share.
The funds will be utilised for deleveraging and accelerated capital expenditure, the Gautam Adani-led company says in a regulatory filing.
"India is on the cusp of becoming a global leader in renewable energy and Adani Green Energy is in the vanguard of this revolution," says Gautam Adani, chairman of the Adani Group. "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 funds infusion, Adani Green says it remains favourably positioned to achieve its accelerated growth trajectory.
Earlier, Adani Green Energy had announced a $1.36 billion construction facility (by 8 leading international banks) for the construction of 2,167 MW solar power projects in Khavda, Gujarat, the largest solar park in India. In addition, the company has announced $1.425 billion of equity capital ($1.125 billion from preferential issuance by promoters and $300 million from TotalEnergies JV), which translates to a fundraising of $3 billion.
This demonstrates the deep interest of long-term investors, strategic partners, financial institutions, banks coupled with continued promoter commitment, to enable Adani Green's target of adding 45 GW of renewable capacity in India by 2030, the filing says.
Adani Green Energy says it is now fully equipped to achieve its stated target of 45 GW by 2030, with 20.6 GW locked in capacity, secured land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas of India and additional equity infusion of ₹9,350 crore which fully funds this stated target.
The Board of Directors of the Company at their meeting held on December 26, 2023, approved raising of funds aggregating up to ₹9,350 crore by way of issuance of up to 6,31,43,677 warrants. The warrants are proposed to be allotted to Ardour Investment Holding Ltd and Adani Properties Private Limited. The issuance is subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the Extraordinary General Meeting (EGM) scheduled on 18 January 2024.
