Adani Group to Raise $500 Million from European Funds for Energy Expansion

Billionaire Gautam Adani’s group is planning to raise up to $500 million from European funds to boost its energy projects. Adani Green Energy, the group’s second-largest subsidiary, has family members and associates holding over 53% of its shares, with a market value exceeding ₹2.8 trillion. To raise this amount, the company will need to sell about 1.5% stake through new shares.

Sources reveal that the Adani Group is in talks with two major European funds, one focused on the energy sector and the other a large hedge fund. These funds are interested in investing in Adani Green, considering its rapid growth as India’s largest renewables firm, with an operational capacity of around 11 GW. The deal is expected to be finalized and announced in May.

Adani Green plans to utilize the funds primarily for developing new solar, wind, and hybrid power projects in Rajasthan, Gujarat, and other regions. The investment will help accelerate its capacity expansion from 10,963 MW to over 20,000 MW. Currently, the company’s portfolio includes solar, wind, and hybrid power generation, with a total operational capacity of over 3,500 MW.

The Adani family recently invested over ₹9,350 crore in Adani Green by subscribing to its warrants, increasing its promoter holding. The company plans to finance its projects through a mix of debt, equity, and internal accruals.

Adani Green’s joint venture with France’s Total Energies is also progressing, with a 1,050 MW project underway, in which Total will contribute funding for 300 MW.

Adani Green aims to achieve 45 GW of renewable energy generation capacity by 2030. It currently has a locked-in growth capacity of over 20,000 MW from existing projects. The company boasts high margins, high line availability, and India’s largest solar-wind hybrid cluster.

Global investors are impressed by Adani Green’s growth in FY24, during which it increased operational capacity by 35%. The company’s energy sales surged by 47% during the fiscal year, driven by a significant increase in effective operating capacity.

In India’s green energy race, Adani is competing with companies like Reliance Industries Ltd. (RIL) and Tata Group. RIL is set to commission a new energy giga complex in Gujarat, aiming for a 100 GW capacity spread over 5,000 acres. Ambani has pledged to double RIL’s investment target for green energy to ₹1.5 trillion. Similarly, Tata Group aims to increase its renewable generation capacity to 15 GW by 2027 and produce all its energy from renewable sources by 2045.