New Delhi: Adani Green Energy (AGEL), the renewable energy subsidiary of Adani Group, is planning to raise approximately $500-700 million (₹4,100-5,740 crore) through a qualified institutional placement (QIP) or other means. According to sources familiar with the matter, the funds will be utilized for the company’s capital expenditure plans and to reduce debt.
AGEL has scheduled a board meeting on May 24 to seek approvals for the fundraising initiative. While the sources have chosen to remain anonymous since the information is not yet public, Adani Group officials were not available for immediate comment. Currently, AGEL operates assets with a capacity of 7.3 GW, and it has mentioned in its Q3 earnings presentation that an additional 13.1 GW of the renewable portfolio is either under construction or nearing completion.
As of March 2023, the company’s gross debt stood at ₹47,424 crore, showing a reduction of ₹747 crore from the previous year’s figure of ₹48,171 crore. In the third quarter of FY23, AGEL’s consolidated net profit more than doubled to ₹103 crore compared to ₹49 crores recorded in the same period the previous year.
This fundraising effort follows similar plans by two other companies within the Adani Group — Adani Enterprises (AEL) and Adani Transmission (ATL) — which are collectively aiming to raise up to ₹21,000 crores through QIPs or alternative methods. AEL plans to raise up to ₹12,500 crores, while ATL is targeting ₹8,500 crore. The objective of these initiatives is to secure additional capital for the operations and growth strategies of the respective companies.
The fundraising will involve the issuance of shares, securities, or other permissible modes, subject to shareholders’ approval through a postal ballot. AEL is the flagship company of the Adani Group, while ATL is the largest private power transmission and distribution company in India.
In addition to the fundraising activities, the Adani Group plans to establish a new subsidiary called Adani New Industries (ANIL), which will eventually house several businesses, either partially or entirely. This includes the airports business, data center business, and green energy, among others. ANIL will serve as a platform for the group’s entry into emerging sectors and facilitate mergers and acquisitions. The businesses will be transferred to ANIL once they achieve a specific scale, as indicated by sources familiar with the matter.
The specific businesses that will be transferred to ANIL have not been finalized yet. However, it is expected that a portion of the company’s airport business, data centers, real estate business, and renewable energy projects (such as green hydrogen, wind turbine manufacturing, solar module production, and battery manufacturing) will be included under the new venture.