Adani Green Set to Raise Rs 12,300 Crore for Expanding Operations
Adani Green Energy Ltd, a renewable energy firm led by billionaire Gautam Adani, has announced plans to raise Rs 12,300 crore through a share sale to investors. This move is part of the company’s strategy to bounce back from allegations of fraud made by a US short-seller. The funds raised will be used to meet the capital requirements of the company’s expansion plans.
Adani Green Energy, in a filing with the stock exchange, stated that its board has approved an issue of equity shares through qualified institutional placement (QIP) to raise the funds. Two other companies within the Adani group, Adani Enterprises Ltd and Adani Transmission, have also announced similar plans to raise funds.
The share offering will be made to qualified institutional buyers, and sources have indicated strong interest from investors in Europe and the Middle East. This development comes after Adani Enterprises had to cancel a Rs 20,000 crore follow-on public offering earlier this year due to allegations made by the Hindenburg Research report.
The Hindenburg report, released in January, accused the Adani Group of accounting fraud and stock price manipulation, causing a significant decline in the conglomerate’s market value. Adani Group has refuted all allegations and is implementing a comeback strategy that includes addressing concerns about cash flows, reducing debt, and revising its expansion plans.
In recent months, Adani Group has taken steps to rebuild market confidence, including investor roadshows, early debt repayments, and scaling back spending on new projects. The funds raised through the share sale will be the largest borrowing by the conglomerate since the release of the Hindenburg report and will be utilized to finance the group’s expansion initiatives.
Adani Enterprises, the flagship company, is involved in various sectors such as airports, roads, data centers, copper, and green hydrogen. The company aims to unlock significant value for investors over the next 5 to 15 years through these businesses. The incubator model of Adani Enterprises has been successful in creating unicorns like Adani Transmission, Adani Power, and Adani Ports & SEZ, with a combined market capitalization of USD 62 billion.
Adani Green Energy has established itself as the largest and fastest-growing renewable energy player in India, with a renewable energy portfolio of 20.4 GW. The company has shown a growth rate of 33 percent CAGR over the past five years, surpassing the industry average of 15 percent. Its target is to achieve a 45 GW portfolio by 2030.
Furthermore, Adani Group plans to separately list its airports and road businesses within the next 3 to 4 years, according to recent statements by the management. These initiatives are expected to drive further growth and value creation for the conglomerate and its investors.
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