The Adani family is set to infuse Rs 9,350 crore (approximately $1.1 billion) into Adani Green Energy, a move aimed at reducing debt and supporting expansion initiatives. Adani Green, with stakes held by Total Energies and GQG Partners, plans to issue convertible warrants to the Adani family at a rate of Rs 1,481 each. Upon conversion into equity shares within 18 months from the issuance date in January 2024, this will elevate the family’s stake from 56.37% to 58.05%. On Tuesday, the Adani Green stock closed at Rs 1,600 on the BSE, reflecting a 4% increase.
As of September-end 2023, Adani Green carried a debt burden of Rs 40,769 crore, and the proposed infusion becomes crucial as the company prepares for bond repayments in September 2024. Gautam Adani, Chairman of Adani Green, expressed optimism about India emerging as a global leader in renewable energy, positioning Adani Green at the forefront of this transformative journey.
“This investment by the Adani family underscore commitment… to an equitable energy transition where we phase phase down traditional power sources while simultaneously phasing up green, affordable alternatives to fuel our accelerating growth and development plans,” remarked Gautam Adani. The Adani family, represented on the board by Gautam Adani, his brother Rajesh Adani, and nephew Sagar Adani, will receive just over 6.3 crore warrants from Ardour Investment Holding and Adani Properties, entities within the promoter group. Each warrant is convertible into one equity share of Adani Green over an 18-month period from the allotment date.
Notably, Adani Properties and Ardour Investment presently hold no shares in Adani Green, according to regulatory filings. The allocation of funds from the warrant issuance involves a strategic allocation, with half of the proceeds, Rs 4,675 crore, dedicated to repaying loans and bonds. The remaining funds will be utilized for renewable projects (Rs 2,338 crore) and ongoing expenses (Rs 2,337 crore). Adani Green has ambitious plans to achieve a renewable energy capacity of 45 gigawatts by 2030.
