Adani Green to raise up to $1 billion

24 May 2023 , 10:24 AM

Adani Green Energy intends to get board approval to raise between Rs 6,150 crore ($750 million) and Rs 8,200 crore ($1 billion) via qualified institutional placement (QIP).

On May 13, two group companies, Adani Enterprises (Rs 12,500 crore) and Adani Transmission (Rs 8,500 crore), received board approval for fundraising.

The move is part of a group plan announced last year to create a ‘three-year equity cushion’ to back up expansion plans.

Adani Green Energy’s capital raise will be used to repay a $750 million three-year bond issued in 2021 that is due next year. According to the sources, the funds will most likely be held in a dedicated redemption reserve account and paid on the due date.

The company originally planned to prepay the bond after receiving special approval from RBI, but later on the company decided against it.

Adani Green is also renegotiating the terms of its agreement with TotalEnergies, the French utility giant, for a proposed $4 billion investment in a green hydrogen venture, which was signed in 2022.

Total announced in February that it was suspending the plan in response to the Hindenburg Research report on the Adani Group, which accused the company of stock manipulation and fraud. The findings of the report have been rejected by the Adani Group.

However, Adani Group received clean chit from SEBI recently.

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