Adani Green Energy shares will be in focus on Wednesday morning as the Adani group firm postponed its planned board meeting on fundraising scheduled for Wednesday due to non-availability of directors.
In a filing to stock exchanges on Tuesday, Adani Green Energy said: "It may please be noted that on account of non-availability of Directors, the meeting of the Board of Directors is now cancelled. The next date of meeting will be informed with a fresh notice," the Adani firm said in a stock exchange filing.
The board meet was already once rescheduled from May 13 to May 24. Initially, Adani Green Energy had on May 10 said its board would consider fundraising on May 13. But on May 12 it informed bourses that the meeting was re-scheduled to May 24.
There was, however, a media report suggesting that Adani Green Energy is in talks with global fund managers to raise Rs 5,000-6,000 crore, as India’s largest renewables company revives its capex plans four months after the Hindenburg setback.
Adani Green is a pure renewable energy (RE) generation play with assets in wind and solar across India. Adani Green's operational capacity stands at 8.1 GW while 12.3 GW of capacity is under/near construction stages.
Jefferies in a recent note said its realisation is locked in for this 20 GW portfolio with land in place for achieving 45 GW capacity eventually by 2030, it said adding that a timely execution of projects, tie-ups with multiple vendors and higher proportion of sovereign counterparty projects are its focus areas.
"We believe RE capacity should rise 82 per cent by FY26-27 & 2.8 per cent by FY30 as Renewable Purchase Obligation (RPO) drives capacity addition until surplus power is absorbed by FY25E-26E. Adani Green is looking to participate in this growth story profitably and already has a pan India presence with operations in 12 states. It currently has 2.1 GW of projects under construction and 10.2 GW of projects under execution. 97 per cent of the portfolio is 25-year fixed tariffs and 86 per cent is tied up with sovereign counterparties. This gives medium-term revenue and cash flow visibility," Jefferies said.
O debt levels, Jefferies noted that Adani Green has gross debt of Rs 47,400 crore and net debt of Rs 40,500 crore, with net debt-to-equity at 5.4 times.
Adani Green's Rs 39,600 crore debt is linked to the operational capacity, while the balance is on upcoming. The company's talks about a target 3.5 times net debt to Ebitda as capacity ramps. The management, Jefferies said, mentioned that liquidity is comfortable.