Adani Green Energy shares edge higher as board approves raising ₹12,300 crore via QIP
Adani Green Energy Ltd will raise ₹12,300 crore by selling shares through qualified institutional placement, or QIP, or other permissible mode in accordance with the applicable laws, the renewable energy arm of the Adani Group said in a regulatory filing after its board meeting on July 6. The fundraising will likely ease concerns of billionaire Gautam Adani's port-to-power conglomerate ability to service its debt and help in instilling some confidence among investors.
It will also help to fund the coal-dependent conglomerate’s green diversification. By selling shares through qualified institutional placement, or QIP, Adani Green is looking to bring on board more institutional investors and attract more research analysts to cover the firm, according to a report by Bloomberg.
The Adani Group has already announced fundraising plans of as much as ₹21,000 crore for two other companies — Adani Enterprises and Adani Transmission — as it attempts a comeback from the crisis triggered by a negative report of US-based short seller Hindenburg Research. While Adani Enterprises said it will raise ₹12,500 crore, Adani Transmission would raise ₹8,500 crore.
In January, Hindenburg Research leveled fraud allegations against Adani Group, which has since denied any wrongdoing. The report wiped out more than $150 billion from the conglomerate’s market value at one point.
India's renewables sector has been one of the most lucrative sectors for international investors, finding its spot among one of the country's top five industries for overseas funds last year. On July 6, shares of Adani Green Energy gained two per cent during the session and touched an intra day high of ₹973.25, settling 0.88 per cent higher at ₹956.30 apiece on the BSE. Get
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