Adani Green Energy gains on $1-billion investment prospect from parent group – EQ
In Short : Adani Green Energy is experiencing positive market traction due to the anticipation of a substantial $1-billion investment from its parent group. This development underscores investor confidence in Adani Green Energy’s prospects and the commitment of the Adani Group to further support renewable energy initiatives.
In Detail : Adani Green Energy gained nearly 1 percent at the open on December 22, a day after it was reported that the parent group was planning to invest $1 billion into the renewable arm, driving the stock up 4 percent. At 9:20am, the shares were trading at Rs 1529.90.
According to a Bloomberg report, Gautam Adani and his family plan to inject $1 billion into the conglomerate’s renewable energy unit. This move is a part of the group’s aim to reach “ambitious green goals while facing maturing bonds next year”. The company aims to reach 45 gigawatts of green energy capacity by 2030.
According to the report, Adani Green Energy Ltd is also looking to issue preferential shares to the company’s founders for meeting expansion and refinancing needs.
On December 15, Adani Green Energy announced that it had incorporated two step down subsidiaries – Adani Renewable Energy Fifty Six Ltd and Adani Renewable Energy Fifty Seven Ltd. Both stepdown subsidiaries have an authorised as well as a paid-up share capital of Rs 1 lakh each.
The main objective of the new subsidiaries is to generate, develop, transform, distribute, transmit, sale, supply any kind of power or electrical energy using wind energy, solar energy or other renewable sources of energy, the company said in a filing.
