Adani Green Energy announced on Tuesday that key stakeholders are set to invest 93.50 billion rupees ($1.12 billion) in the company, with a focus on expanding its renewable power capacity. The plan involves the issuance of up to 63.1 million warrants on a preferential basis, priced at 1,481 rupees per warrant. Each warrant is convertible into one equity share, as detailed in the company's official statement.
The infusion of funds is earmarked for reducing the company's debt and expediting investment in various projects. This development aligns with India's broader objectives outlined in an April government memo, which seeks to bolster non-fossil capacity, particularly in solar and wind energy, aiming to achieve 500 gigawatts (GW) by 2030. This target comes on the heels of India falling short of its 175 GW renewable capacity goal by 2022.
India, the world's third-largest emitter of greenhouse gases, is striving to increase the share of non-fossil capacity to 50% by 2030, up from the current 42.6%. In response, Adani Green expressed confidence in meeting its own ambitious target of 45 GW renewable capacity by 2030, up from the current 8.4 GW. The company, having already secured $3 billion for its renewable capacity, including a $1.36 billion green loan from an international bank consortium and a $1.44 billion fundraising, is poised for further growth.
Adani Green's recent positive developments include a $300 million joint venture with France's TotalEnergies. However, the company's shares, despite closing up 4.4% following the news, remain down over 17% for the year. This dip can be traced back to a January report by U.S. short-seller Hindenburg, which triggered a market downturn for Adani Group's listed entities.
As part of the broader Adani Group, Adani Green's parent firm is also eyeing substantial financing of up to $4 billion for its green hydrogen plans, according to a report in October.