Adani Green Energy is ready to approach its board of directors to raise an investment ranging from Rs 6,150 crore ($750 million) to Rs 8,200 crore ($1 billion), a report published in The Economic Times (ET) said. The report said that the sum would be raised through the qualified institutional placement (QIP) route.
Previously, on May 13, two Adani Group companies, Adani Enterprises and Adani Transmission, received the approval of the board to raise Rs 12,500 crore and Rs 8,500 crore, respectively. This fundraising activity is part of the group's plan to support its expansion plans.
The capital raised by Adani Green Energy will be used to repay a three-year bond issued in 2021, which is due next year. People in the know said that the sum raised is likely to be kept reserved and will be used to make the payment in 2024, the report said.
Moreover, Adani Green is also renegotiating the terms of its agreement with its French partner TotalEnergies. The two companies signed a memorandum of understanding in 2022 to build a green hydrogen venture worth $4 billion, ET reported.
However, Total put the plan on the back burner in February thanks to the Hindenburg Research report and the following financial meltdown of the Adani Group stocks.
After the Hindenburg rout, Total announced that it would take some time and won't immediately proceed with the plan to buy a 25 per cent stake in Adani New Industries Limited, a subsidiary of Adani Enterprises.
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The report made allegations of financial manipulation and fraud against the Adani Group. Adani Group has denied all the allegations.
