Adani Green Energy Ltd's shares surged over 6 per cent during the day following the company's announcement that its board of directors approved a preferential issuance of warrants to the firm's promoters.
The issuance is valued at Rs 9,350 crore ($1,125 million) and will be issued at Rs 1,480.75 per share. The company's shares soared 6.26 per cent to Rs 1,630, up from the previous BSE close of Rs 1,533.95, Business Today reported.
Adani Green Energy's market cap was at Rs 2.56 lakh crore, with a total of 4.22 lakh shares traded, resulting in a turnover of Rs 66.74 crore. The stock eventually closed 4.30 per cent higher at Rs 1,599.90 on BSE.
The company stated that the issuance is contingent upon the approval from regulatory and statutory authorities, as well as the company's shareholders at the Extraordinary General Meeting (EGM) set for 18 January 2024.
The resources will be allocated towards debt reduction and hastened capital outlay. AGEL is now completely prepared to reach its declared goal of 45 GW by 2030.
This is supported by 20.6 GW of confirmed capacity, over 2 lakh acres of secured land (equivalent to more than 40 GW of extra capacity) in resource-abundant regions of India, and an additional equity infusion of Rs 9,350 crore, fully financing this declared objective.
"India stands on the brink of becoming a worldwide leader in renewable energy, with Adani Green Energy leading the charge," stated Gautam Adani, the Adani Group's Chairman.
"The Adani family's investment demonstrates our dedication not only to realizing our country's clean energy aspirations but also to a fair energy transition that gradually reduces dependence on conventional power sources while concurrently increasing reliance on green, affordable alternatives to propel our rapid growth and development plans. With this capital injection, AGEL is well-positioned to pursue its fast-paced growth path," Adani further noted.
Nishtha Anushree is Senior Sub-editor at Swarajya. She tweets at @nishthaanushree.
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