Adani Green Energy, the renewable energy division of the Adani Group, plans to raise ₹12,300 crore by selling shares to qualified institutional investors.
What Happened? After a board meeting on July 6, Adani Green Energy made a statement announcing a move that is expected to lessen worries over the group’s ability to pay off its debts and reinforce investor confidence. The initiative also aims to aid the group’s transition from coal to green energy.
The company hopes this share sale will attract more institutional investors and research analysts, according to Bloomberg. The details in Adani Green’s filing to the stock exchanges reveal plans to issue equity shares and/or other eligible securities worth up to ₹12,300 crore, pending necessary approvals.
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This fundraising initiative comes after similar plans from other Adani Group companies – Adani Enterprises and Adani Transmission – aiming to raise ₹12,500 crore and ₹8,500 crore respectively. These moves followed allegations of fraud by Hindenburg Research, which Adani Group has refuted.
India’s renewable energy sector has been attracting significant international investment, ranking among the country’s top five industries for overseas funds last year.
Price Action: Adani Green Energy shares rose by 2%, hitting an intra-day high of ₹973.25, and closing 0.88% higher at ₹956.30 on the BSE.
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