As the shadows cast by the Hindenburg Case fade, the Adani Group is looking to the sun for a brighter future. Two days after the group’s renewable energy arm, Adani Green Energy Ltd (AGEL), announced the conclusion of the largest power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) to deliver 1,799 MW of solar power, the group has taken another big stride in the green game.
Achieving 45 GW in Green Energy by 2030
The Adani family is pouring a massive ₹9,350 crore (approximately $1.1 billion) into AGEL to achieve the 45 GW target by 2030 and to meet debt payment obligations. Already a powerhouse in India’s renewable energy space, this hefty investment is aimed at helping the billionaire become a frontrunner in the sector and silence the critics about their debts.
Here’s a quick look at the numbers:
- ₹40,769 crore debt as of September-end 2023
- ₹4,675 to repay the loans and bonds
- ₹2,338 crore to invest in renewable projects
- ₹2,337 crore for its ongoing expenses
- 5-fold jump in AGEL’s capacity, from its current 5 GW to 45 GW
The Twin Goals Through the Investment
The investment is not just about the group’s loan repayment efforts. The other side of the story is India’s clean energy transition. The country is the world’s fourth-largest emitter of greenhouse gases and battles the twin challenges of energy security and climate change. Adani’s green push will make him a partner in India’s clean energy journey.
Right Moves in the Right Direction
Whether Adani’s green gamble will pay off remains to be seen, but the conglomerate is making the right moves in the right direction. It has made some big announcements like;
- $1.36 billion construction facility for 2,167 MW solar power projects in Khavda, Gujarat, India’s largest solar park
- $1.425 billion of equity capita
- $1.125 billion from preferential issuance by promoters Ardour Investment Holding Ltd and Adani Properties Pvt Ltd
- $300 million from TotalEnergies joint venture), totaling up to $3+ billion
The AGEL board has approved the issuance of 6.31 crore warrants at ₹1,480.75 per share to promoter group companies Ardour Investment Holding Ltd and Adani Properties Pvt Ltd. The conversion of the warrants into the company’s equity shares will increase the Adani family’s stake to 58.05% from 56.37% within 18 months from the date of issuance in January 2024.
The Hindenburg case may have triggered a steep share market value dip by more than 71% by the end of February 2023, at a staggering ₹17.8+ lakh crore. Still, the investment, stock prices, and green plans hint towards the investor confidence returning and the sun shining on the Adani Group again.
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