Gautam Adani’s Adani Green Energy will sell shares worth £1.23 billion to institutional investors, days after he sold a 2. 9% stake in the company to GQG Partners for £423.2 million.
The cash will be used by the renewables company, which France's TotalEnergies owns around 20% of, for business expansion. The business intends to increase its green energy capacity by roughly 3 gigawatts this fiscal year, at a cost of about £1.4 billion, according to its CFO Phuntsok Wangyal, who made the announcement in May.
Adani Green's board has approved a fund-raising strategy using the qualified institutional placement (QIP) route, and the company is now looking for shareholder approval. The shareholder's approval is good for 12 months. Adani and his family will lose around 8% of their present 57% ownership in Adani Green to the company's post-equity capital.
In May, the Ahmedabad based business tycoon’s two other companies, Adani Enterprises and Adani Transmission, announced that they will collectively raise up to £2.1 billion through the QIP mode. QIP is a less regulated route than a public market offering like follow on offering (FPO) to raise money from institutions such as banks and funds. It will also help a company to broad-base its shareholding and attract more research analysts to cover it. According to Bloomberg, only one analyst currently tracks Adani Green.