Adani Green Energy Limited (AGEL), with a total solar capacity of 18.1 GW, has been ranked second after TotalEnergies in Mercom Capital's Global Solar PV Developer Rankings. Adani stands as the only player from Asia in the global large-scale solar PV developer ranking. In the meeting held on December 26, 2023, the board of directors of the company approved the raising of funds aggregating up to Rs. 9,350 crore by way of the issuance of up to 6,31,43,677 warrants, each convertible into or exchangeable for 1 fully paid-up equity share of the company of a face value of Rs. 10/- each at a price of Rs. 1,480.75 each payable in cash, to Ardour Investment Holding Ltd. and Adani Properties Private Limited, each being a part of the promoter group of the company, by way of a preferential issue through a private placement offer. As of the September 23-ended quarter, promoters and promoter groups held a 56.26% stake in the company.

The company intends to utilize the proceeds raised through the preferred issue towards deleveraging, accelerated capital expenditure, and general corporate purposes. The company will utilize approximately Rs 4675 crore for repayment of loans and bonds with interest payments, maturing in September 2024. The company will utilize Rs. 2338 crore for investment in subsidiaries for undertaking investments in or providing loans to the subsidiaries of the company for the purposes of developing existing and new renewable projects. And the remaining Rs 2337 crore, or up to 25% of the issue proceeds, will be utilised for general corporate purposes, which include, inter alia, meeting ongoing general corporate exigencies, contingencies, and expenses of the company. The firm said that the issuance is subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the extraordinary general meeting (EGM) scheduled for January 18, 2024.

AGEL stated that it is now fully equipped to achieve its stated target of 45 GW by 2030, 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 an additional equity infusion of Rs 9,350 crore, which fully funds this stated target.

Gautam Adani, chairman of Adani Group, said, “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 fund infusion, AGEL remains favorably positioned to achieve its accelerated growth trajectory."

As per the company newsroom, AGEL has completed its 1,050 MW joint venture with TotalEnergies, which involved TotalEnergies investing $300 million in AGEL's subsidiary to acquire a 50% stake in the projects. The JV houses a mix of operational, under construction, and underdevelopment assets, as well as solar and wind power projects in India. The company earlier informed us that it has executed a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) to supply 1,799 MW of solar power. Upon the signing of this balance PPA, AGEL has completed the offtake tie-up for the entire 8,000 MW manufacturing-linked solar tender awarded to it by SECI in June 2020, which set a record for being the world’s largest solar tender.

The Adani Group's stock has seen a steep rise in the past month, rising more than 50% after a report by a US agency and a Supreme Court ruling. Currently, the stock is trading in the overbuy zone in the daily and weekly time frames. The stock at the time of reporting was trading at Rs. 1,587.