Adani Green hits 52-week high in weak market, stock zooms 53% in one month

Shares of Adani Green Energy (AGEL) continued their upward journey on Monday to hit a fresh 52-week high of Rs 68.65, up 6 per cent in an otherwise weak market. The stock extended its past two days' 15 per cent rally on the exchange. 

The scrip is 12 per cent away from its all-time high level of Rs 78, touched on August 7, 2018. In comparison, the S&P BSE Sensex was down 0.19 per cent at 37,601 points at 03:06 pm. In the past one month, the stock has zoomed 53 per cent, against 1.4 per cent rise in the benchmark index.

AGEL, a subsidiary of the Adani Group and one of the largest renewable power generation companies in India, on Friday said it has raised $362.5 million through a dollar bond issuance.

The dollar bonds, which have a maturity of 20 years, bear an interest rate of 4.625 per cent, the company said in an exchange filing.

“The Issuers intend to use all of the proceeds to repay their respective foreign currency loans, rupee borrowing and the balance of the net proceeds for capital expenditure, other project related liabilities or for general corporate purposes, in accordance with guidelines prescribed by the Reserve Bank of India (RBI),” it added.

The proceeds raised through the bond issuance will be used explicitly for three subsidiaries of Adani Green - Wardha Solar (Maharashtra) Pvt Ltd, Kodangal Solar Park Pvt Ltd and Adani Renewable Energy (RJ) Ltd.

Moody's Investors Service has assigned a first-time provisional rating of (P) Baa3 to the proposed 20-year USD-backed senior secured notes to be issued under the newly-established Adani Green Energy Restricted Group (RG-2). The rating outlook is stable.

"The (P)Baa3 rating of the proposed USD notes reflects the credit quality of RG-2, which is in turn supported by its predictable revenues from a diversified set of projects in India, operating under long-term power purchase agreements with fixed tariffs," says Abhishek Tyagi, Moody's Vice President and Senior Analyst.