Shares of Adani Green Energy (AGEL) rose over 1% in early trade on Friday amid a report that promoter Gautam Adani and his family are planning to invest $1 billion (around ₹8,340 crore) into the conglomerate’s renewable energy unit. Adani Green, one of the youngest listed units of the Adani Group, is mulling issuing preferential shares to the company's founders to meet expansion and refinancing requirements, the report said, adding that the deal is yet to be finalised.
Reacting to the news, AGEL shares gained as much as 1.6% to ₹1,544 in opening trade against the previous closing levels of ₹1,519.85 on the BSE. On Thursday, the stock ended 4.7% higher.
At the time of reporting, shares of Adani Green were up 0.34% at ₹1,525, with a market capitalisation of ₹2.14 lakh crore.
In the recent past, Adani Green shares have witnessed strong rally, with its share price jumping nearly 400% from its 52-week low of ₹2,185.30 touched on February 28, 2023, to hit a fresh 52-week high of ₹2,185.30 in intraday trade on December 18, 2023.
Earlier this month, the company secured a $1.36 billion loan from an international bank consortium, which will be used to boost its construction financing framework.
Besides, Adani Green also unveiled plan to repay its $750 million bond, with a coupon rate of 4.375%, due next year. In a filing to Singapore stock exchange (SGX), the company said it would raise funds via new bond issuance in order to refinance its dollar (USD) denominated notes due in September 2024. The company has asked the underwriters of the bond to provide a funding letter for $675 million, while it plans to lists $75.47 million in restricted reserves, it said in the filing.
Above all, Adani Group plans to invest $100 billion for the green energy transition over a decade. Under the green energy transition initiative, five group companies - Adani Green Energy, Adani Energy Solutions, Adani Ports & SEZ, ACC, and Ambuja Cements - aim to become net zero by 2050 or earlier. The group recently said that the Adani portfolio businesses are “actively engaged in decarbonisation efforts and have pledged to plant 100 million trees by the year 2030”.
Adani Green, the renewable energy arm of Adani Group, has also reported strong earnings in the September quarter of 2023. As per the company, the growth in revenue, EBITDA and cash profit was primarily driven by capacity addition of 1,592 MW over the last one year and improved capacity utilisation factor (CUF).
The company registered a 150% surge in its consolidated net profit to ₹372 crore in the second quarter ended September 30, 2023, as compared to ₹149 crore in the year ago period. Sequentially, the profit rose 15.5% from 322 crore in the July quarter of the current fiscal. The total income jumped 53.7% to ₹2,589 crore in Q2 FY24, from ₹1,684 crore in the corresponding quarter last fiscal. On quarter-on-quarter, the revenue increased by 8.3% from 2,390 crore in Q1 FY24. EBITDA rose 58% YoY to ₹3,775 crore, while run-rate EBITDA stood at ₹7,645 crore. The net debt to run-rate EBITDA was at 4.99x as of September 2023, as compared to 5.9x last year.
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