Adani Green Energy Ltd, the renewable power company of billionaire Gautam Adani's conglomerate Adani Group, will raise Rs 12,300 crore by selling shares through qualified institutional placement, or QIP, or other permissible mode in accordance with the applicable laws, the company said in a regulatory filing after its board meeting on Thursday.

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The fundraising will likely ease concerns of the Adani Group's ability to service its debt and will help in instilling some confidence among investors.

The Ahmedabad-headquartered company is looking to bring on board more institutional investors and attract more research analysts to cover the firm, accoridng to a Bloomberg report. Only one analyst currently tracks the company, data compiled by Bloomberg showed.

The Adani Group has already announced fundraising plans of as much as Rs 21,000 crore for two other companies — Adani Enterprises and Adani Transmission — as it attempts a comeback from the crisis triggered by a negative report of US-based short seller Hindenburg Research.

While Adani Enterprises said it will raise Rs 12,500 crore, Adani Transmission would raise Rs 8,500 crore.

Shares of Adani Green were up nearly 2 percent at Rs 965.50 apiece in trade Thursday. The stock has lost 49.44 percent on a year-to-date basis after Hindenburg leveled major allegations against the conglomerate in late January this year.

Hindenburg Research accused the conglomerate of share price manipulation through shell companies, corporate misgovernance, highly leveraged books, and even went on to call it the biggest con in corporate history.

The Adani Group, however, has firmly denied these allegations.

The US-based short seller's report wiped out billions of dollars from the conglomerate's market value at one point.

(Edited by : C H Unnikrishnan)

First Published:Jul 6, 2023 3:07 PM IST