Adani Green Energy Share price and Fundamental Analysis

Company History

Adani Green Energy Limited is among the largest renewable energy businesses in India with a current project portfolio of 20,434 MW. The Adani Group has been promoted by the visionary industrialist Mr. Gautam Adani in 1988 as a commodity trading business, the flagship company being Adani Enterprises Limited (previously Adani Exports Limited). Headquartered in Ahmedabad, India, Adani Group comprises the largest and fastest-growing portfolio of diversified businesses in India with interests in Logistics (seaports, airports, logistics, shipping and rail), Power Generation, Transmission & Distribution, Integrated Resource Management, Renewable Energy, Gas & Infrastructure, Agro (commodities, edible oil, food products, cold storage and grain silos), Solar Manufacturing, Real Estate, Public Transport Infrastructure, Defence & Aerospace, Mining Services, Copper, Petrochemicals, Data Centre and other sectors. Apart from this, it establishes, builds, develops, operates and maintains utility- scale grid connected solar power, wind power, hybrid projects and solar parks.

The Company has expanded its presence across 11 Indian States with the help of long-term Power Purchase Agreements (PPAs) with Central and State Government entities. It has 5,410 MW operational projects and 15,024 MW under construction. Presently, the Company has installed capacity of 12 MW at Lahori to augment renewable power supply in Madhya Pradesh. It sells power generated from 12 MW wind power project under long term Power Purchase Agreement (PPA) and is engaged in renewable power generation and purchase/ sale of other ancillary goods. Adani Green Energy was incorporated on 23 January 2015 as a subsidiary of Adani Enterprises Limited (AEL) with an objective of dealing in any kind of power or electrical energy using coal, lignite, petroleum products or any other substances, wind energy, solar energy, renewable energy, wave energy, tidal energy, hydro energy, thermal energy or any other form of energy and any products or byproducts derived from any such business of energy and to set up power plants, wind turbines, power stations, hydel power station, solar energy systems, renewable energy systems or any other facility to generate power.

The first accounting period of the company was from 23 January 2015 to 31 March 2016. The paid up share capital of the company increased from Rs. 5 lacs to Rs. 160 crore during the period under review.

During the period under review, Adani Green Energy signed contract with Inox Wind Limited for setting up of wind power project of 20 MW capacity at Lahori, Madhya Pradesh. Out of this, 12 MW capacity has achieved commercial operation as on 31 March 2016. The company also won 50 MW Solar Power bid in the state of Jharkhand from JREDA under Jharkhand State Solar Power Policy 2015.

During the period under review, Adani Green Energy's subsidiary company Adani Renewable Energy Park Limited entered into Joint Venture Agreement with Government of Rajasthan and formed a Joint Venture Company under the name 'Adani Renewable Energy Park (Rajasthan) Limited' with equity ratio of 50:50.

During the year ended 31 March 2017, Adani Properties Private Limited transferred 9,36,31,650 Equity Shares of Rs. 10/- each held by it in Adani Green Energy to Universal Trade and Investments Limited.

On 20 December 2017, Adani Green Energy disposed off 50,000 Equity Shares of Zemira Renewable Energy Limited (Zemira) (erstwhile known as Adani Wind Energy (AP) Limited) constituting 100% of paid-up share capital of Zemira. Accordingly, Zemira ceased to be subsidiary of the company.

On 22 March 2018, Adani Green Energy acquired 49% of Equity Shares of Kodangal Solar Parks Private Limited (KSPPL). Accordingly, KSPPL became a joint venture of the company.

The National Company Law Tribunal, bench at, Ahmedabad had, vide its order dated 16 February 2018 sanctioned the Scheme of Arrangement among Adani Enterprises Limited (AEL) and Adani Green Energy Limited (AGEL) and their respective shareholders and creditors (the Scheme). The Scheme, with effect from 1 April 2018, inter alia, provides for transfer and vesting of Renewable Power Undertaking of AEL to AGEL. As per the Scheme, 100% investment of AEL into Equity Shares of Prayatna Developers Private Limited (PDPL) was transferred to AGEL with effect from the appointed date i.e. 1 April 2018. Accordingly, PDPL became wholly-owned subsidiary of AGEL with effect from 1 April 2018.

The company had 15 (direct and indirect) subsidiaries and 1 joint venture as on 31 March 2018.

Upon the Scheme of Arrangement among Adani Enterprises Limited and Adani Green Energy Limited and their respective shareholders and creditors, coming into effect from 01 April 2018, the Company had issued 761 Equity Shares of Rs 10/- each to shareholders of Adani Enterprises Limited against every 1,000 Equity Shares held by them. Accordingly, 64,96,89,000 Equity Shares held by Adani Enterprises Limited in the Company alongwith its nominees were cancelled and 83,69,55,473 Equity Shares were issued by the Company on 08 April 2018.

The Equity Shares of the company got listed on BSE Limited, Mumbai and the National Stock Exchange of India Limited, Mumbai on 18 June 2018.

The Company had 39 (direct and indirect) subsidiaries and 1 Joint Venture as on 31 March 2019.

The Company has entered into a Joint Venture Agreement dated 03 April 2020 with Total Solar Singapore Pte Ltd ('Total'), to record the terms and conditions for (i) regulating the operation and management of the JV Company; (ii) governing the relationship between the Company and Total; (iii) certain rights and obligations of the Company and Total in relation to the JV Company. The JV Company owns 2,148 MW operational Solar Power Project. The Company and Total, both, own 50% shareholding of the JV Company.

The Company refinanced its 648 MW Kamuthi Solar PV project from Power Finance Corporation in FY 2019-20, refinancing its operational solar portfolio.

The company had 74 (direct and indirect) subsidiaries and 1 Joint Venture as on 31 March 2020.

The company added 925 MW operational capacity in FY21 despite pandemic. In FY21, AGEL commissioned 100 MW solar plant in Rajasthan, 250 MW solar plant in Gujarat, 125 MW solar plant in Uttar Pradesh and 100 MW wind plant in Gujarat.In FY21, AGEL completed acquisition of 205 MW solar plants from Essel Group, 75 MW solar plants from Sterling & Wilson, 50 MW solar plants from SkyPower Global, 20 MW solar plant from Hindustan Power projects.

The company had 116 (direct and indirect) subsidiaries, associates and 1 Joint Venture as on 31 March 2021.

In FY'21, It acquired 23.5% stake in India's leading airports - Mumbai airport.

The Company acquired 100% holdings of SB Energy Holdings Limited in FY'21.

In December 2021, Company signed the world's largest renewables power purchase agreement for 4.67GW capacity as part of the record-breaking 8GW solar generation in SECI's first manufacturing-linked solar tender. It engaged in the largest acquisition in India's renewable energy space when it acquired SB Energy's ~5 GW portfolio for USD 3.5 billion. It enhanced the availability of probable project land parcels to 2,00,000 hectares as of now.

As of March 31, 2022, Company operated 5.4 GW of renewable assets and was implementing ~15 GW projects, creating a locked-in portfolio of ~20.4 GW.

In FY'22, Company invested in India's largest Bi-Facial & Tracker-based solar project; it was the first to use string inverters, enhancing energy stability. It commissioned India's first hybrid energy park, which reconciles solar and wind renewable energy infrastructure within the same location, strengthening Return on Land and empowering to generate power through all 24 hours. It increased the largest energy generation capacity of ~3 GW; It signed ~6 GW of power purchase agreements out of 8 GW of manufacturing-linked solar projects, the world's largest PPA. It mobilized US $750 million through a bond issuance for setting a global benchmark. It acquired of Softbank's 5 GW renewable energy portfolio. It commenced operations of Bravus mine in Australia. It took over operations of the Guwahati, Jaipur and Thiruvananthapuram airports and acquired of MIAL and NMIAL. During FY 2021-22, it acquired the 4.9 GW of renewable portfolio of Softbank and Bharti Group. This acquisition helped leapfrog its aggregate capacity, empowering AGEL to achieve 25 GW capacity target for 2025 ahead of schedule. It commissioned the Khavda Land project and tied up to accommodate 15 GW renewable projects in Khavda (Gujarat). The Company also secured land needs for its 45 GW ambition by 2030. It acquired Mumbai and Navi Mumbai airports. The Adani Wilmar Limited IPO subscribed 17x. Its combined Group market capitalisation exceeded USD 200 billion. It added 1,940 MW operational capacity in FY 2021-22 (greenfield commissioning 200 MW and inorganic addition 1,740 MW). It forged long-term contracts with Bloomberg Tier-1 rated solar equipment manufacturers and wind turbine generators, reconciling customized solutions and timely project completion. It signed the world's largest PPA with SECI to supply ~6 GW of renewable energy.

During the year 2022-23, Company acquired 100% equity share capital of three entities, Wind One Renergy Limited, Wind Three Renergy Limited and Wind Five Renergy Limited from Inox Green Energy Services Limited on October 10, 2022, each housing 50 MW operational wind power projects.

AGEL added a massive 2,676 MW renewable capacity to its operational fleet in FY 2022-23, which includes 2,140 MW solar-wind hybrid plants in Rajasthan, 325 MW wind power plant in Madhya Pradesh and 212 MW solar power plants in Rajasthan. AGEL signed PPAs for 450 MW wind projects and 650 MW solar projects with SECI in FY 2022-23 further strengthening the firm project pipeline.

Adani Green Energy S L Limited was incorporated as a wholly owned subsidiary of the Company effective from April 21, 2022.