Adani Green boosts promoter stake with near-₹500 crore equity infusion from Ardour Investment

Adani Green Energy Ltd (AGEL), India’s largest renewable energy company by market capitalisation, has allotted 44.9 lakh equity shares to Ardour Investment Holding Ltd, a promoter group entity, following the conversion of warrants issued earlier this year. The move represents an equity infusion of about ₹498.7 crore and marginally increases the promoter shareholding from 60.94% to 61.05%.

The conversion is part of a larger ₹9,350 crore capital raise announced in January 2024, where Ardour was allotted 6.31 crore warrants at an issue price of ₹1,480.75 each. At the time, Ardour paid 25% upfront, with the balance payable at conversion. With the latest tranche, 44.9 lakh warrants have been converted into fully paid-up equity shares, priced at ₹1,480.75 per share (including a premium of ₹1,470.75), as per Sebi’s ICDR regulations. The remaining warrants, which are about 5.86 crore in number, are eligible for conversion until July 24.

This fresh equity injection comes at a critical time for AGEL, which has been aggressively scaling its renewable portfolio to meet its 45 GW capacity target by 2030. As of March, the company has over 9.5 GW of operational capacity and an additional 11 GW under execution. Its parent, Adani Group, is positioning AGEL as the flagship for its green energy ambitions amid global investor scrutiny and a strategic pivot to clean energy.

The allotment also reflects renewed promoter confidence in the business, which is recovering from last year's volatility triggered by the Hindenburg Research allegations. Despite the turbulence, AGEL has successfully attracted capital from marquee global investors, including GQG Partners and TotalEnergies, which jointly hold a minority stake.

Shares of Adani Green Energy were trading 2.24% lower in late trade. Analysts are largely positive on Adani Brokerage Emkay Global reiterated its ‘buy’ rating on the stock, with a current market price of ₹922 and a target price of ₹1,500, on the back of a strong performance of the company in its fourth quarter, where its EBITDA rose 31% from the same time last year, largely attributed to an increase in operational capacity and growth in the sale of power.