Adani Shares In Spotlight As Group Mulls To Invest $1 Billion In Renewable Energy Firm

Adani shares remained in the limelight on Friday (December 22) after a media report said Thursday that the parent group was mulling to invest $1 billion into the renewable energy firm, driving Adani Green Energy shares almost 4% in the previous session. Today, the share price of Adani Green Energy was up 0.35% at Rs 1525.20 per share at 11:27 am IST.

According to a Bloomberg report, Adani group chairman Gautam Adani and his family plan to infuse $1 billion into the group's renewable energy unit. This move is a part of the Indian conglomerate's aim to reach "ambitious green goals while facing maturing bonds next year". The company intends to reach 45 gigawatts of green energy capacity by 2030.

As per the report, Adani group's renewable energy firm Adani Green Energy Ltd is also looking to issue preferential shares to the company's founders to meet expansion and refinancing needs.

The company board is scheduled to consider fundraising proposals on December 26, including examining options such as selling shares or convertible securities. In an exchange filing on December 20, the company said, "... a meeting of the Board of Directors of Adani Green Energy Limited (the "Company") is scheduled to be held on December 26, 2023 inter alia, to consider and evaluate a proposal for raising of funds by way of issue of equity shares, convertible securities and / or any other eligible securities, on a rights / preferential basis or any other permissible mode / and / or combination thereof as may be considered appropriate, subject to all such regulatory / statutory approvals as may be required."

The company further stated that as per the company's Code of Conduct for Prohibition of Insider Trading, the trading window will remain closed with effect from December 21, 2023, till 48 hours after the closure of the meeting to be held on December 26, 2023.

Notably, the company has bond maturities worth $1.2 billion coming up next year and it has already started outlining plans for their repayment. Earlier this month, it raised a loan from eight banks.

All these efforts underscore the Indian conglomerate's attempts to draw a line over damaging allegations of corporate fraud leveled by US Short seller Hindenburg Research in January this year. The Hindenburg report negatively impacted the share price performance of Adani group stocks for months.

Despite the Gautam Adani-led group strongly denying these allegations and calling them baseless, at one point Adani companies lost more than $150 billion in market value.

Shares of Adani group companies rallied last month after the Supreme Court said it won't take media reports on the conglomerate as the "gospel truth" while reserving the verdict on its investigation into Hindenburg's allegations.

The conglomerate seems to be in clawback mode as it has lowered its debt, got marque investors, secured US funding for its Sri Lanka port project, and instilled investors' and lenders' confidence in the group companies.

Today, the share price of Adani Enterprises was up 0.95% at Rs 2828.15 per share at 11:28 am IST, Adani Total Gas shares were up 1.90% at Rs 1003.25 per share, Adani Ports shares were up 1.43%, and Adani Energy Solutions share price was up 1.02% at Rs 1037.45 per share at 11:29 am IST.