Renewable energy developer Adani Green Energy will raise ₹93.5 billion ($1.1 billion) through preferential issuance of warrants to its promoters, which include Ardour Investment Holding and Adani Properties, at a share price of ₹1,480.75 (~$17.80) per share.

The company’s board of directors approved the issuance on December 26, 2023, to raise funds to help reduce the company debt and accelerate capital expenditure to achieve the 45 GW renewable capacity target by 2030.

The transaction will see the issuance of 63,143,677 warrants constituting up to 3.833% of the company’s share capital.

Each warrant will be convertible into or exchangeable for one full paid-up equity share of the company of the face value of ₹10 (~$0.120), which can be exercised in one or more tranches during the first 18 months after the date of allotment.

The issuance is pending approval from regulatory and statutory authorities and company shareholders, who are expected to convene on January 18, 2024, to discuss the same.

The transaction follows the company’s senior debt facility of $1.36 billion from eight leading international banks earlier this month, taking the total capital raised to $3 billion. The financing is expected to be a key enabler in developing a 2,167 MW renewable energy park in Khavda, Gujarat.

The company has a total of 20.6 GW of pipeline capacity and has secured land of over 200,000 acres, equivalent to over 40 GW of additional capacity in resource-rich areas of the country.

In September 2023, TotalEnergies, a French oil and gas major, announced that it would invest $300 million to form a new 50:50 joint venture with Adani Green Energy. The new joint venture will comprise 1,050 MW of renewable assets, including 300 MW of operational assets, 500 MW of assets under construction, and 250 MW of assets under development with a blend of solar and wind power.

In August, INQ Holdings, a wholly-owned subsidiary of the Qatar Investment Authority, acquired a significant stake in Adani Green Energy by purchasing 42.6 million shares for ₹39.2 billion (~$472 million).

Adani Green Energy was ranked second in Mercom Capital’s Leading Global Large-Scale Solar PV Developers Report released recently. The company also emerged as India’s leading utility-scale solar project developer during the first half of 2023 in Mercom’s India Solar Market Leaderboard 1H 2023.