Adani Green gets ₹9,350cr boost as promoter converts warrants

Mumbai: Adani Green Energy Ltd (AGEL) has received a fresh equity infusion of ₹9,350 crore from its promoter group, following the conversion of outstanding share warrants into equity by Ardour Investment Holding Ltd. The board approved the conversion on July 17, marking the completion of a preferential allotment initiated in January 2024.

Ardour, part of the Adani Group's promoter entities, had subscribed to the warrants at ₹1,480.75 each, paying 25% upfront last year. The remaining 75%-paid this week- came when AGEL's stock was trading around ₹1,030, a 45% premium seen as a strong show of the promoter group's commitment in AGEL's long-term growth.

"With this, the company has received the full issuance amount and all warrants have been converted into equity shares," AGEL said in a regulatory filing.

In total, 1,15,76,193 convertible warrants were converted into an equal number of equity shares with a face value of ₹10 each. As a result, AGEL's issued, subscribed, and paid-up capital has increased from 163.56 crore shares to 164.72 crore shares. The promoter group's holding has increased slightly from 62.17% to 62.43%. The new shares will rank pari passu with existing equity in terms of dividend and voting rights.

Of the proceeds, ₹3,116 crore will be used to repay shareholder loans, while the remaining ₹6,233 crore will go toward capital expenditure and general corporate purposes. AGEL said the capital infusion fully funds its plan to reach 50 GW of installed capacity by 2030, a significant leap from its current base.

The financial impact is substantial. AGEL's net worth is expected to rise from ₹22,574 crore (as of March 31, 2025) to ₹31,192 crore. Its net debt-to-equity ratio has improved from 3.07x to 2.04x, making it the lowest among Indian renewable energy firms and among the lowest globally. Its net debt-to-EBITDA ratio has also improved to 6.05x from 6.57, and is projected to fall to around 5x by FY26/27 and 4x by FY28.

AGEL currently has 15,800 MW of operational capacity and aims to exceed 19,000 MW by March 2026. It has secured power purchase agreements (PPAs) for an additional 16,000 MW. A large part of this growth will come from the Khavda solar park in Gujarat's Kutch district, which is set to become the world's largest solar energy project.