Adani Green Energy shares gain as promoters to infuse Rs 9,350 crore

Shares of Adani Green Energy Ltd gained over 6% intraday after the Adani Group's firm said its board of directors has approved a preferential issuance of warrants to the promoters of the company for a quantum of Rs 9,350 crore (equivalent to $1,125 million). The warrants will be issued at price of Rs 1,480.75/share. Adani Green Energy shares zoomed 6.26% to Rs 1630 against the previous close of Rs 1533.95 on BSE. Market cap of Adani Green Energy stood at Rs 2.56 lakh crore. Total 4.22 lakh shares changed hands amounting to a turnover of Rs 66.74 crore. Later, the stock closed 4.30% higher at Rs 1,599.90 on BSE.

Adani Green Energy stock opened higher at Rs 1555 on BSE today. Adani Green Energy shares have lost 13.69 per cent in a year and fallen 14.30 percent since the beginning of this year. The large cap stock hit a 52-week high of Rs 2185.30 on January 18 , 2023 and a 52-week low of Rs 439.35 on February 28, 2023.

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The Adani Group's stock is trading neither in oversold nor in the overbought zone, with its relative strength index (RSI) at 68.3. Adani Green shares are trading higher than the 20 day, 50 day, 100 day, 150 day and 200 day moving averages.

The issuance is subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the Extraordinary General Meeting (EGM) scheduled on 18 January 2024, said the firm.

The funds will be utilised for deleveraging and accelerated capital expenditure. AGEL is now fully equipped to achieve its stated target of 45 GW by 2030, with 20.6 GW locked in capacity, secured land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource rich areas of India and additional equity infusion of Rs 9,350 crore which fully funds this stated target.

"India is on the cusp of becoming a global leader in renewable energy and Adani Green Energy is in the vanguard of this revolution," said Gautam Adani, Chairman of the Adani Group. "This investment by the Adani family underscores our commitment not only to making our nation's clean energy dream a reality but also to an equitable energy transition where we phase down traditional power sources while simultaneously phasing up green, affordable alternatives to fuel our accelerating growth and development plans. With the funds infusion, AGEL remains favorably positioned to achieve its accelerated growth trajectory," added Adani.

The Adani Group firm reported a 149% rise in Q2 profit at Rs 371 crore led by higher sales of power against Rs 149 crore in Q2 of the previous fiscal. The renewable power firm's total income climbed 54 percent on-year to Rs 2,589 crore in Q2FY2 4 from Rs 1,107 crore in the year-ago period. Expenses climbed 43 percent on-year to Rs 2,160 crore in Q2FY24 against Rs 1,514 crore in Q2FY23.