Adani Enterprises' Rs 20,000 crore FPO to fund green capex, debt payback

Rs 11,000 crore will be invested in green hydrogen and airport projects, Rs 4,100 cr for retiring debt

Adani Enterprises (AEL), flagship company of ports-to-energy conglomerate Adani Group, will use the proceeds from its follow-on public offering (FPO) to invest Rs 11,000 crore in capital expenditure towards the green hydrogen and airport projects and another Rs 4,100 crore in retiring debt of road, airport, and solar projects, the company said in its prospectus.
 
The Rs 20,000-crore FPO, which opens for subscription on January 27 and closes on January 31, will give investors the option to pay 50 per cent with the application and the rest over two instalments.
 
The company said it is setting up a fully integrated green hydrogen ecosystem to enable access to low-cost renewable power, produce low-cost green hydrogen at scale, and manufacture downstream products.
 
The group had announced its ambitious target to invest $70 billion by 2030 in green energy, including green hydrogen.
 
The company said it is expanding its solar manufacturing wherewithal to backward-integrate wholly, covering the manufacture of primary components of a solar module — from silicon, ingots, wafers, cells to the module — and related ancillary products.
 
The company plans to expand its solar module manufacturing competence at Mundra Special Economic Zone to up to 10 gigawatt (Gw) per annum and cover the manufacture of metallurgical grade silicon, polysilicon, ingots, wafers, cells, and the module itself.
 

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Mundra Solar Technology, a subsidiary of AEL, is planning to set up a new plant of up to 2 Gw per annum for the manufacturing of ingots and wafers.
 
“Our solar manufacturing facility currently covers the manufacture of cells, modules, and ancillary products. It has an installed capacity of 3.5 Gw, including 2 Gw of monocrystalline capacity and 1.5 Gw per annum of multi-crystalline technology,” it said, adding it intends to expand to approximately 10 Gw in the future.
 
As part of setting up the Mundra Solar TechnoPark integrated plant, the company will incur expenditure of Rs 1,800 crore towards the acquisition of land, construction of buildings, civil and infrastructure works, purchase of plant and machinery, utilities, and other soft costs.
 
AEL said the total estimated cost of the Ahmedabad airport expansion project is Rs 2,268 crore and another Rs 300 crore for the Mangaluru project. It will invest Rs 2,700 crore in the Lucknow airport expansion project.
 
The company said it will invest in constructing the Ganga Expressway. Of this, the total estimated cost of the Hardoi-Unnao project is Rs 7,669 crore.