Adani Green Energy raises $1.1 bn via warrant issuance to promoters
POWER & RENEWABLE ENERGY

Adani Green Energy raises $1.1 bn via warrant issuance to promoters

Adani Green Energy, a renewable energy developer, is set to raise Rs 93.5 billion ($1.1 billion) through the preferential issuance of warrants to its promoters, which include Ardour Investment Holding and Adani Properties. The issuance, approved by the company's board of directors on December 26, 2023, aims to reduce company debt and expedite capital expenditure to achieve the 45 GW renewable capacity target by 2030.

This transaction involves the issuance of 63,143,677 warrants, constituting up to 3.833% of the company's share capital. Each warrant, priced at Rs 1,480.75 (~$17.80) per share, is convertible into or exchangeable for one fully paid-up equity share with a face value of Rs 10 (~$0.120). The warrants can be exercised in one or more tranches within the first 18 months after the date of allotment.

Pending approval from regulatory authorities, statutory bodies, and company shareholders, a meeting is scheduled for January 18, 2024, to discuss and finalise the issuance.

This move follows the company's recent senior debt facility of $1.36 billion from eight international banks, bringing the total capital raised to $3 billion. The funds will play a crucial role in the development of a 2,167 MW renewable energy park in Khavda, Gujarat.

Adani Green Energy boasts a pipeline capacity of 20.6 GW and has secured land exceeding 200,000 acres, equivalent to over 40 GW of additional capacity in resource-rich areas of India.

In September 2023, TotalEnergies announced a $300 million investment to create a 50:50 joint venture with Adani Green Energy, encompassing 1,050 MW of renewable assets. This joint venture includes 300 MW of operational assets, 500 MW under construction, and 250 MW under development, featuring a blend of solar and wind power.

Furthermore, in August, INQ Holdings, a wholly-owned subsidiary of the Qatar Investment Authority, acquired a substantial stake in Adani Green Energy by purchasing 42.6 million shares for Rs 39.2 billion (~$472 million).

Recent accolades for Adani Green Energy include being ranked second in Mercom Capital's Leading Global Large-Scale Solar PV Developers Report and emerging as India's leading utility-scale solar project developer during the first half of 2023 in Mercom's India Solar Market Leaderboard.

Adani Green Energy, a renewable energy developer, is set to raise Rs 93.5 billion ($1.1 billion) through the preferential issuance of warrants to its promoters, which include Ardour Investment Holding and Adani Properties. The issuance, approved by the company's board of directors on December 26, 2023, aims to reduce company debt and expedite capital expenditure to achieve the 45 GW renewable capacity target by 2030. This transaction involves the issuance of 63,143,677 warrants, constituting up to 3.833% of the company's share capital. Each warrant, priced at Rs 1,480.75 (~$17.80) per share, is convertible into or exchangeable for one fully paid-up equity share with a face value of Rs 10 (~$0.120). The warrants can be exercised in one or more tranches within the first 18 months after the date of allotment. Pending approval from regulatory authorities, statutory bodies, and company shareholders, a meeting is scheduled for January 18, 2024, to discuss and finalise the issuance. This move follows the company's recent senior debt facility of $1.36 billion from eight international banks, bringing the total capital raised to $3 billion. The funds will play a crucial role in the development of a 2,167 MW renewable energy park in Khavda, Gujarat. Adani Green Energy boasts a pipeline capacity of 20.6 GW and has secured land exceeding 200,000 acres, equivalent to over 40 GW of additional capacity in resource-rich areas of India. In September 2023, TotalEnergies announced a $300 million investment to create a 50:50 joint venture with Adani Green Energy, encompassing 1,050 MW of renewable assets. This joint venture includes 300 MW of operational assets, 500 MW under construction, and 250 MW under development, featuring a blend of solar and wind power. Furthermore, in August, INQ Holdings, a wholly-owned subsidiary of the Qatar Investment Authority, acquired a substantial stake in Adani Green Energy by purchasing 42.6 million shares for Rs 39.2 billion (~$472 million). Recent accolades for Adani Green Energy include being ranked second in Mercom Capital's Leading Global Large-Scale Solar PV Developers Report and emerging as India's leading utility-scale solar project developer during the first half of 2023 in Mercom's India Solar Market Leaderboard.

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