Adani Green Energy Raises $1.13B to Boost Renewable Energy Transition in India

India’s largest renewable energy developer, Adani Green Energy, said its shareholders will invest INR 9,350 crore ($1.13 billion) in the company to boost its capacity, achieving its stated target of 45 GW by 2030.

Adani Green Energy Raises $1.13B to Boost Renewable Energy Transition in India

Adani Green Energy Ltd (AGEL) released a statement saying that its board of directors approved the issuance of INR 9,350 crore of warrants on a preferential basis to the promoter group at a share price of INR 1,480.75/share, calculated based on SEBI ICDR regulations. This way, shareholders are expected to invest INR 9,350 crore ($1.13 billion) in the company to boost its capacity.

This transaction follows a successful debt raise of around $1.4 billion earlier in December 2023, taking the total capital raised to USD 3 billion. According to the statement, the raised funds will be used for deleveraging and accelerated capital expenditure, enabling the company to reach the planned 45 GW capacity by 2030.

AGEL assures it is fully equipped to achieve this stated target, 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.

The issuance of warrants on a preferential basis is still subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the Extraordinary General Meeting (EGM), which is scheduled for 18 January 2024.

“India is on the cusp of becoming a global leader in renewable energy and Adani Green Energy is in the vanguard of this revolution. 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, AGEL remains favorably positioned to achieve its accelerated growth trajectory.”

Mr Gautam Adani, Chairman of the Adani Group

Earlier this year, AGEL 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.

Besides, AGEL has recently announced $1.425 billion of equity capital ($1.125 billion from preferential issuance by promoters and $300 million from TotalEnergies JV), which would aggregately bring a capital raise of $3 billion.

On Dec. 27, the 1,050 MW joint venture (JV) with TotalEnergies was completed. As part of the JV, TotalEnergies invested $300 million in the AGEL subsidiary, to acquire a 50% stake in the projects. The JV portfolio comprises a mix of already operational (300 MW), under construction (500 MW) and under-development assets (250 MW) with a blend of both solar & wind power projects in India.

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.