Adani Enterprises Ltd. will transfer its renewable power business to associate company Adani Green Energy Ltd., which will then eventually get listed on exchanges. The transaction is said to unlock value of its renewable sector business, it said in an exchange filing.
In lieu of transfer of assets, Adani Green Energy will issue 761 new equity shares of Rs 10 each for every 1,000 equity shares of Re 1 each to the equity shareholders of Adani Enterprises. The renewable power business contributed nearly Rs 816 crore, i.e, 9.5 percent to Adani Enterprises’s turnover for financial year 2016-17.
The Scheme is subject to the approval from BSE and NSE, Securities and Exchange Board of India, shareholders and creditors of AEL and AGEL, National Company Law Tribunal and others.
The scheme will simplify the business structure and unlock the value of renewable business by eliminating holding company discount and providing financial flexibility for raising capital for sustainable growth of the business.
The appointed date for transfer has been fixed at April 1, 2018.
The Boards, including the independent directors of AEL and AGEL, have approved the proposed Scheme and recommended the same in the interest of their respective shareholders.
Adani renewable energy business is India’s largest infrastructure conglomerate and the largest private energy producer. It has the largest renewable power IPP (independent power producer) having a total portfolio of 2,148 MW in India, of which 1,988 MW is solar portfolio. The entire capacity has been tied up under 25 year power purchase agreements with diversified sovereign off-takers.