Billionaire Gautam Adani and family inject ₹8,300 crore into Adani Green Energy, propelling India’s renewable energy push.
Billionaire Gautam Adani and his family are making a seismic shift in the Indian energy sector with a whopping ₹8,300 crore investment in Adani Green Energy. This mega-deal, aimed at Adani Green Energy, positions Adani as a leader in the booming renewable energy market. Dive into the details of this groundbreaking investment, explore its potential impact on the industry, and discover the larger strategic vision behind Adani’s clean energy push. This post sheds light on a game-changing move that could redefine India’s energy future.
New Town, West Bengal, India (25 December 2023): In a significant move towards bolstering India’s renewable energy sector, billionaire Gautam Adani and his family are poised to make a colossal ₹8,300 crore (approximately $1 billion) investment in Adani Green Energy, the youngest yet most promising arm of the Adani Group. This mega-investment, as reported by Bloomberg, signals the Adani family’s commitment to environmental sustainability and green energy ambitions.
According to people with knowledge of the situation, the plan calls for giving the Adani Green founders priority shares in order to meet their needs for refinancing and expansion. Although the acquisition is still in the negotiation stage, the funding infusion is anticipated to be crucial to the strategic expansion of the company.
Mega-Investment to Boost Adani Green Energy
Adani Green Energy, already a leader in the renewables space with the world’s largest solar photovoltaic plant (Kamuthi Solar Power Project in Tamil Nadu) and ambitious targets of achieving 45 GW of green energy capacity by 2030, is slated to receive this vital influx of funds through the issuance of preferential shares to its founders. This capital injection will serve a dual purpose: financing the company’s aggressive expansion plans and facilitating the refinancing of $1.2 billion in bonds maturing next year.
According to the article, which cited people with knowledge of the situation, Adani Green is thinking of giving the company’s founders priority shares in order to satisfy its needs for refinancing and expansion. The agreement has not yet been formalised, though.
Adani Green is to convene a board meeting on December 26 to discuss fundraising ideas, such as the potential sale of shares or convertible securities, as part of their business expansion. The corporation disclosed this in its exchange filings.
Adani Green’s stock shows an increase.
The shares of Adani Green Energy have experienced a notable increase amidst the Sensex and Nifty’s unprecedented upswing. The company’s shares increased by as much as 4.6% on Thursday, after a larger rally in which other group companies also witnessed increases.
To support the growth of its renewable generating capacity, the firm obtained a $1.36 billion loan earlier this month from a consortium of foreign banks.
Adani Greens enjoyed a few profitable days on the stock exchange this week, but several other Adani Group companies witnessed significant losses. The biggest losers on the market on Wednesday, when the Sensex fell by 930 points, were Adani Ports & Special Economic Zone (down 5.76%) and Adani Enterprises (down 5.35%).
In comparison to the same period last year, the company’s consolidated net profit increased by 150% to ₹372 crore in the second quarter that ended on September 30, 2023, from ₹149 crore. The profit increased 15.5% sequentially from 322 crore in the current fiscal year’s July quarter.
From ₹1,684 crore in the equivalent quarter of the previous fiscal year to ₹2,589 crore in Q2 FY24, the total income increased by 53.7%. From 2,390 crore in Q1 FY24, the revenue grew by 8.3% on a quarter-over-quarter basis. Run-rate EBITDA was ₹7,645 crore, while EBITDA increased 58% YoY to ₹3,775 crore. As of September 2023, the ratio of net debt to run-rate EBITDA was 4.99x, down from 5.9x the previous year.
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