Adani Group’s renewable energy arm seeks to raise $200 million

Adani group’s renewable energy arm is seeking to raise external equity capital after having pumped in millions of dollars of its own money to build a pipeline of projects worth over 2 gigawatts (GW), two people aware of the development said.

The proposed fundraising could see Adani’s renewable arm — Adani Green Energy Ltd — raise as much as $200 million (approximately ₹1,300 crore), said one of the two people cited above, requesting anonymity.

“They have been holding talks with investment banks over the last couple of months for the same. So far, the group has selffunded the renewable business and has invested ₹1,800-1,900 crore (close to $300 million) into the business,” the person said, adding that the group is looking to dilute 30% in the business.

Adani Green Energy will end up having an operating capacity of close to 2GW by June end, said the second person cited above, also requesting anonymity. “The equity fundraise and subsequent debt that the company will be able to raise on top of that will enable it to develop almost another gigawatt of capacity,” he added.

According to an earnings press release of Adani Enterprises dated February 14, the group’s renewable business had operational projects of 760 MW of solar and wind power. Another 1,414 MW of projects are under various stages of implementation.

An email sent to Adani group on Thursday enquiring about its renewable business’ fundraising plans was not answered.

In October 2015, Aditya Birla group announced a partnership with Dubai-based private equity firm Abraaj Group to build a renewable energy platform. Last year, Piramal Enterprises Ltd and Dutch pension fund asset manager APG Asset Management committed to jointly invest $132 million in Essel Infrastructure‘s solar platform.