Adani Green Energy promoters to sell stake worth ₹400 cr via OFS

Industry:    June, 2019

Adani Group’s renewable energy company Adani Green Energy Ltd on Tuesday said its promoters led by Gautam Adani will sell a 5.98% stake in the company through an offer for sale (OFS).

The stake sales are being planned to bring down the promoter shareholding in the company to 75% to meet norms of the Securities and Exchange Board of India on minimum public shareholding, which require listed companies to have at least 25% public shareholding.

As of 31 March 2019, the promoters of Adani Green Energy held 86.5% stake in the company.

The promoters, including Gautam Adani, Priti Adani, and Rajesh Adani, aim to collectively sell 93.5 million shares of the company, according to a regulatory filing.

The proposed offer for sale will open on Wednesday for institutional and high-networth individual investors and on Thursday for retail investors. The promoters have set a floor price of 43 for the share sale, which will value the stake at402 crore.

The company builds, owns, and operates power plants powered by renewable sources of energy such as solar and wind. It had an installed capacity of 1,958 megawatts (MW) as of 31 December 2018, across 11 states. The latest effort follows a similar stake sale by the promoters in March. At the time, two promoter entities Adani Tradeline Llp and Universal Trade and Investment sold about 87.5 million shares through an offer for sale. The two collectively sold 5.59% stake in the company.

For the nine months ended 31 December 2018, Adani Green Energy reported 28% increase in revenue from 1,075 crore to1,377 crore on the back of over 100% growth in operating capacity to 1,958MW (solar: 1,898MW and wind: 60MW) from 708 MW (solar-648 MW and wind: 60MW) after new plants were of commissioned.

Ebitda, or earnings before interest, taxes, depreciation and amortization, for the nine-month period more than doubled from 585 crore to 1,240 crore largely because of capacity addition resulting in an increased generation.

On Tuesday, shares of Adani Green Energy closed almost flat at42.55 on the BSE, while the benchmark Sensex closed at 39,950.46, up 0.42%.