Adani Group to raise up to $500 mn from Europian funds in energy push

livemint.com:

MUMBAI : Adani Green Energy Ltd is close to raising $400-500 million from at least two Europe-based funds, two people aware of the deal said. Billionaire Gautam Adani's family members and associates hold 53.67% in Adani Green Energy, the group's second-largest subsidiary with a market value of over ₹2.8 trillion. The company will need to sell new shares worth about 1.5% stake to raise the amount, going by its current market price.

"The group is negotiating with at least two large funds based out of Europe. One is an energy-sector fund and one is a large hedge fund. Funds are keen to invest in the company after it emerged as the fastest and the largest renewables firm in India with about 11 GW operational capacity.

The deal to raise the capital via stake sale in Adani Green is likely to be announced in May," one of the two people cited above said on condition of anonymity. The company has so far raised around $3 billion, mostly from the promoters or from consortium lenders. If the latest deal goes through, it will be the first time Adani Green will raise a large amount of capital from global funds.

An email sent to Adani Group on Friday seeking comments remained unanswered till press time. Adani Green will use the amount primarily to build new solar, wind and hybrid power projects in Rajasthan, Gujarat and other locations. According to the people cited above, the funds will help Adani Green expedite capacity expansion from 10,963 MW to over 20,000 MW.

Currently, it has a hybrid (solar plus wind energy) power generation capacity of 2,140 MW (in Rajasthan) and a total wind energy power generation capacity of 1,401 MW, while the rest is solar. Recently, the Adani family invested over Rs. 9,350 crore equity in Adani Green by