Adani Green Energy given 44.9 lakh shares on warrant conversion to Ardour, Rs 500 crore will be invested
New Delhi:
Adani Green Energy Ltd., the company of Adani Group, said that her promoter entity Erdor (Ardor) has converted a warrant of Rs 500 crore into equity shares at a price of Rs 1,480.75 per share. This conversion has been at a premium of Rs 921 to 60.7% from the current market price.
Conversion of 44.9 lakh warrants
Member Edor of the Promoter Group has converted 44.90 lakh warrants to the same equity shares. Earlier in January 2024, a warrant of Rs 2,337.5 crore was converted into equity share. Now warrants worth more than Rs 6,500 crore are still left, which are to be converted by July 24, 2025 within 18 months.
What is converted warrants?
In December 2023, Adani Green issued 6.31 crore converted warrants to Erdor, which cost Rs 9,350 crore. Convertible warrants mean that these warrants can be converted into stock later. Edor received these warrants through preference allotment. Then the issue price of a warrant was Rs 1,480.75, out of which the initial payment at the time of the warrant allocation was Rs 370.19 (25% of the issue price) per warrant i.e. 25% upfront payment.
Ardor’s stake in Adani Green increased to 61.04%
Edor has given the remaining 75% money (Rs 1,110.56 per warrant), so that they can convert them into warrant shares. After getting the money, the Board Management Committee has approved this latest allotment. After this conversion, Ardor’s stake in Ador Green has increased to 61.04%.
In today’s business, Adani Green’s shares were trading with a slight increase.
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