Adani Green to raise Rs 12,300 cr via QIP for capex, debt reduction

The board of Adani Green Energy Ltd (AGEL) on Thursday cleared plans to raise up to Rs 12,300 crore by way of qualified institutional placement (QIP) of shares or any other share sale instrument.

The company will use the proceeds to repay debt and for capacity expansion. Two group companies, Adani Enterprises Ltd (AEL) and Adani Transmission, had earlier announced they will raise funds worth Rs 21,000 crore via the QIP/share sale route. All QIPs will be launched later this year.

Adani promoter entities, too, are raising funds to prepay debt. American financial powerhouse GQG Partners (GQG), along with other investors, on June 28 acquired via block deals additional shares worth Rs 8,200 crore from the Adani family in the group’s flagship Adani Enterprises and AGEL. Within days, promoter companies sold a 3 per cent stake in Adani Transmission to raise Rs 2,666 crore from GQG and other investors.

The promoter companies earlier in March raised Rs 15,446 crore by selling shares to GQG. Later that month, GQG bought from the market additional shares worth Rs 3,800 crore in Adani group companies.

GQG’s investment led to a revival in Adani Group shares. In June, GQG’s total investment in AEL and AGEL increased to Rs 23,200 crore.

Banking sources said GQG sees value in Adani companies which have emerged as critical infrastructure developers in India’s private sector. “Adani portfolio companies offer a one-stop play for India’s growing infrastructure theme with no equivalent alternative,” said a banker.

Adani Group companies came under a bear attack after a report by US-based short seller Hindenburg Research alleged in January that the conglomerate manipulated its stock price. The company denied the allegations and later a committee appointed by the Supreme Court did not find any fault in market regulator Securities and Exchange Board of India’s investigation.

Adani Green shares have lost almost half of their valuation from the pre-Hindenburg peak and are trading at Rs 961 apiece, with total market valuation of Rs 1.52 trillion.

AGEL has emerged as the largest and fastest-growing renewable energy player in India. Its green capacities have grown at a 33 per cent compound annual growth rate over the past five years, outpacing the industry average of 15 per cent.

Currently, the size of its renewable energy portfolio stands at 20.4 gigawatt (Gw): 8.2 Gw operational and another 12.2 Gw under-construction and near-construction projects. The company is targeting a 45-Gw portfolio by 2030.