Adani Green Energy Secures Rs 9,350 Crore Investment from Gautam Adani to Trim Debt and Propel Capital Expenditure Initiatives

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Adani Green Energy Secures Rs 9,350 Crore Investment from Gautam Adani to Trim Debt and Propel Capital Expenditure Initiatives

Gautam Adani and his family are injecting INR 9,350 crore ($1.12 billion) into Adani Green Energy Ltd (AGEL), signaling the conglomerate's recovery from the damaging impact of allegations made by US short seller Hindenburg Resources earlier in the year.

This investment will take the form of convertible warrants, with AGEL planning to utilize the funds to trim debt and support capital expenditure, aiming to achieve its ambitious target of 45GW renewable energy capacity by 2030. AGEL will issue up to 6.31 crore warrants, convertible into an equivalent number of shares, to Ardour Investment Holding Ltd and Adani Properties Pvt Ltd.

The warrants may be exercised in one or more phases over 18 months, starting from the date of warrant allotment, accounting for 3.833% of the share capital upon conversion. As of September 30, 2023, the promoters held 56.26% of AGEL.

On Tuesday, AGEL's shares surged over four percent, reflecting market confidence in the company due to the promoter's fund infusion.

Closing at Rs 1,599.90 on the BSE, a gain of Rs 65.95 or 4.30%, with a market cap of Rs 2.53 lakh crore, AGEL stated that the issuance is subject to regulatory and shareholder approval at the extraordinary general meeting scheduled for January 18, 2024.

With a current operating renewable portfolio of 8.4GW, the largest in India spanning 12 states, AGEL expressed confidence in achieving its 2030 energy goals with the latest capital injection.




Gautam Adani, Chairman of Adani Group, emphasized India's potential to become a global leader in renewable energy, with AGEL at the forefront of this revolution. The promoter family's investment underscores their commitment to realizing the country's clean energy aspirations and promoting an equitable energy transition.

Earlier, AGEL secured $1.36 billion from eight global banks to construct 2.1GW solar power projects at Khavda, Gujarat, marking a significant step towards the development of the largest solar park in India. Despite the setback from Hindenburg's allegations in January, the Adani Group has rebounded since March, attracting investments and reducing debt.

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