Adani To Demerge Renewable Energy Business; Simplify Structure, Financial Flexibility, Sustained Growth
The Scheme will simplify the business structure providing the shareholders of AEL direct shareholding in AGEL, listing of the largest Renewable Power IPP having a total portfolio of 2148 MWAC in India
Adani Enterprise Ltd (AEL) will demerge its renewable energy business into its associate company, Adani Green Energy Ltd (AGEL) in a bid to simply the structure for sustained growth of renewable energy business.
The company, AGEL, would later be listed on BSE Ltd and the National Stock Exchange of India Ltd.
“The Scheme will simplify the business structure providing the shareholders of AEL direct shareholding in AGEL, listing of the largest Renewable Power IPP having a total portfolio of 2148 MWAC in India,” said the company statement.
It also adds that the transaction is expected to unlock the value of Renewable Power Undertaking currently embedded in the value of AEL by eliminating holding company discount and providing financial flexibility for raising capital for sustainable growth of Renewable Energy business.
Under the proposed scheme, AGEL will issue and allot 761 new equity shares of Rs 10 each of AGEL for every 1,000 equity shares of AEL. The existing equity shares held by AEL in AGEL will be cancelled pursuant to the Scheme.
“The transaction contemplated under the Scheme is expected to close by first quarter of 2018,” mentioned the statement.
Adani Group is presently developing 2148 MWAC renewable energy portfolio. The current operating capacity stands at 1128 MWAC. The renewable power businesses of the company include development of renewable power projects, generation of renewable power and trading and supply of solar and wind energy equipment.
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