Adani Plans Demerger, IPO For Renewable Energy Arm

One of India’s leading conglomerates, Adani Enterprises, has announced plans to demerge the company’s renewable energy arm and list it at the stock exchanges.

The board of Adani Enterprises recently announced that it will demerge Adani Green Energy in an attempt to simplify the overall business structure of the group. The group already has a separate company for the conventional power assets — Adani Power — which also operates one of the largest thermal power plants in India.

The listing of Adani Green Energy would give access to potential shareholders to one of India’s largest renewable energy companies. Adani Green Energy would likely inherit a portfolio of 2.1 gigawatts of renewable energy capacity from the parent company post-demerger. This includes India’s largest solar power project that is currently under construction in Tamil Nadu. Of the planned 648 megawatts of capacity, the company has so far commissioned 216 megawatts.

The company is also working on the largest tracker-equipped solar power project in India. The 105 megawatt project is likely to be commissioned soon in the state of Punjab.

Adani Enterprises is also the largest solar module and cell manufacturer in India with an installed production capacity of 1,200 megawatts. It recently signed an agreement with China’s East Hope industrial group for partnership in solar modules and cells production.

Adani Green Energy has been participating rather aggressively in the recent wind as well as solar power auctions. The company has also auctioned projects at its own solar power park in Rajasthan which yielded the lowest tariffs ever.

The parent hopes to complete the demerger process by the first quarter of 2018. Each shareholder of Adani Enterprises will receive 761 new equity shares of Adani Green Energy for every 1,000 shares held in the parent company.