TN Electricity Minister denies commercial ties with Adani conglomerate
This is the first reaction of the DMK government following the indictment of the Adani conglomerate in a US court.
Billionaire Gautam Adani and his family will inject Rs 9,350 crore into the conglomerate’s green energy arm to equip it to achieve the 45 GW target by 2030 and to meet debt payment obligations, the company said in its filing.
The company said the investment will be used for deleveraging and accelerated capital expenditure in Adani Green Energy Ltd (AGEL).
The board of AGEL approved the plan to issue 6.31 crore warrants at Rs 1,480.75 apiece to promoter group companies, Ardour Investment Holding Ltd and Adani Properties Pvt Ltd.
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The investment would give the promoter group firms a 3.833% equity stake in the company. The company has bond maturities worth $1.2 billion coming up next year and it has already begun outlining plans for repaying or refinancing those.
AGEL closed at Rs 1,599.90, up 4.3 per cent, on the BSE on Tuesday.
Notably, the green energy developer already has a Power Purchase Agreement (PPA) tie-up of 19.8 GW (out of 20.6 GW locked in capacity, balance 800 MW being merchant) and land of over 2,00,000 acres (equivalent to over 40 GW of additional capacity) in resource-rich areas.
The company, which has a goal of 45 GW of green energy capacity by 2030, approved a preferential issuance of warrants to the promoters for a quantum of Rs 9,350 crore for Rs 1,480.75 per share.
The issuance is subject to the approval of regulatory and statutory authorities as well as the shareholders of the company at the Extraordinary General Meeting (EGM) scheduled on January 18, 2024, a company statement said.
Adani was hit by damaging allegations of corporate fraud by Hindenburg Research in January. It denied any wrongdoing but lost over $50 billion in market value at the lowest point. Some of that loss has been recovered in months thereafter.
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