Adani Green Energy (AGEL), the renewable energy arm of Adani Group, is looking to raise about $500-700 million (`4,100-5,740 crore) through a qualified institutional placement (QIP) or other modes.A part of the funds would be used for the company’s capex plans, apart from paring debt, sources close to the development told FE.
The firm has convened a board meeting on May 24 to seek approvals for the fundraise.While the sources declined to be identified as the information is not yet in the public domain, Adani Group officials could not be immediately contacted for comments. AGEL has 7.3 GW operating assets. The firm, in its Q3 earnings presentation, said 13.1 GW of the renewable portfolio is either under construction or nearing completion.
The company had posted gross debt of Rs 47,424 crore as of March 2023, a reduction by Rs 747 crore from Rs 48,171 crore recorded as of March 2022. Its consolidated net profit more than doubled to Rs 103 crore in the third quarter of FY23, compared with `49 crore recorded during the same year-ago period.The fundraise follows similar plans by two other group companies — Adani Enterprises (AEL) and Adani Transmission (ATL) — who together plan to raise up to a total of `21,000 crore through QIPs or other modes.
AEL plans to raise up to Rs 12,500 crore, while ATL is looking to raise Rs 8,500 crore. The aim is to secure additional capital for the companies’ operations and growth strategies.The fundraise would be through issuance of shares, securities or other permissible modes, for which the companies will seek shareholders’ approval through a postal ballot. AEL is the flagship company of the group, while ATL is the largest private power transmission and distribution company in India.
Separately, the group also intends to move a number of businesses, either partly or fully, such as its airports business, data centre business and green energy, among others, to a new subsidiary, Adani New Industries (ANIL). The new firm, set up to foray into emerging sectors, will also be the group’s vehicle for M&As. These businesses will be moved after they grow to a specific scale, sources close to the development told FE.
The group is yet to finalise the specific businesses that will be moved to ANIL. Part of the company’s airport business, data centres, realty business and renewable energy projects (green hydrogen, manufacturing of wind turbines, solar modules and batteries among others) are likely to be housed under the new venture.