The Adani Group, led by billionaire Gautam Adani, is set to invest a whopping Rs 9,350 crore into their business's green energy sector. This substantial infusion aims to bolster Adani Green Energy Ltd, empowering it to reach its ambitious goal of generating 45 gigawatts (GW) of renewable energy by 2030. The plan was revealed through an official filing by the company.
The significant investment of Rs 9,350 crore into Adani Green Energy Ltd is earmarked for two primary purposes: reducing debt and accelerating the company's capital spending. Currently, the green energy developer already boasts a Power Purchase Agreement (PPA) for 19.8 GW of its total 20.6 GW capacity, with the remaining 800 MW operating on a merchant basis. Moreover, the company holds vast land holdings exceeding 2,00,000 acres, equivalent to potential additional capacity of over 40 GW in areas abundant with resources.
To facilitate this investment, the company's board has approved a preferential issuance of warrants to the promoters totaling Rs 9,350 crore. These warrants will be priced at Rs 1,480.75 per share. However, the issuance is contingent upon receiving approvals from regulatory bodies, statutory authorities, and the company's shareholders. The Extraordinary General Meeting (EGM) slated for January 18, 2024, will provide the platform for these crucial approvals.
Earlier initiatives by Adani Green Energy Ltd included securing a construction facility worth USD 1.36 billion from eight leading international banks for their 2,167 MW solar power projects in Khavda, Gujarat. This project stands as India's largest solar park. Additionally, AGEL had announced a USD 1.425 billion equity capital, consisting of USD 1.125 billion from preferential issuance by promoters and USD 300 million from a TotalEnergies JV, culminating in an impressive capital raise exceeding USD 3 billion.
The company expressed satisfaction with the substantial interest shown by long-term investors, strategic partners, financial institutions, and banks in supporting AGEL's targets. This sentiment was highlighted in the official filing, showcasing the commitment from various stakeholders alongside the continuing support from the company's promoters.
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