RENEWABLE ENERGY

Buying SoftBank’s energy unit not enough to recharge Adani Green’s shine

It’s been a stellar past year for Adani Green Energy Ltd (AGEL). Its share price has surged nearly 4X, closing at an all-time high of Rs 1,300 ($18) on 21 May. In September, it was even anointed the world’s largest solar energy developer.

The cherry on the cake was its May acquisition of SoftBank’s clean energy unit in India, SB Energy Holdings, for an enterprise valuation of $3.5 billion. With SB Energy’s 5 gigawatt ( GW) of solar and wind projects, AGEL’s total portfolio of 24.3 GW is more than double that of its closest competitor—Goldman Sachs-backed ReNew Power. “Adani is in a different league when it comes to financing,” says a former executive with SB Energy. They and other officials working with clean energy companies The Ken spoke to requested anonymity as they did not want to be seen commenting on AGEL.

Just months earlier, in March, AGEL raised $1.35 billion in debt from 12 international banks to finance its projects. It’s as if AGEL is free of the limitations that other clean energy companies have in taking on large projects or in acquiring portfolios like SB Energy’s.

With a market capitalisation of roughly Rs 1,94,000 crore ($26.5 billion), AGEL is the most valuable company of the Adani Group, which is headed by Asia’s second-richest person, Gautam Adani.

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The Ken
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