Adani Green Energy Limited (AGEL), a leading player in the renewable energy sector, has announced the incorporation of a new wholly-owned subsidiary through its step-down subsidiary, marking a significant expansion in its renewable energy portfolio.

New Subsidiary Details

Adani Renewable Energy Holding Eleven Limited (AREH11L), a wholly-owned subsidiary of AGEL, has incorporated a new company named Adani Ecogen Three Limited (AE3L) on September 22, 2025. The newly formed entity is registered with the Registrar of Companies, Gujarat at Ahmedabad, with both authorized and paid-up capital of Rs. 1,00,000 each.

Business Objectives

AE3L's primary objective is to establish a strong presence in the renewable energy sector. The company aims to generate, develop, transform, distribute, transmit, sell, and supply power or electrical energy using various renewable sources, including:

• Wind energy
• Solar energy
• Other renewable energy sources

This move aligns with Adani Green Energy's commitment to expanding its footprint in the clean energy sector and contributing to India's renewable energy goals.

Current Status and Industry

As of now, AE3L has not commenced business operations. The company will operate in the renewable energy power generation industry, which is experiencing rapid growth and attracting significant investments in India.

Corporate Structure

The incorporation of AE3L creates a multi-tiered structure within the Adani Green Energy group:

1. Adani Green Energy Limited (Parent Company)
2. Adani Renewable Energy Holding Eleven Limited (Wholly-owned subsidiary of AGEL)
3. Adani Ecogen Three Limited (Wholly-owned subsidiary of AREH11L)

This structure allows AGEL to maintain full control over its expanding renewable energy operations while potentially benefiting from operational and financial efficiencies.

Market Impact

While the incorporation of a new subsidiary is a significant development for Adani Green Energy, the company has clarified that recent movements in its stock volume are purely market-driven. In a separate disclosure to the BSE, AGEL stated that it has no control over or knowledge of the reasons for the increase in trading volume of its equity shares.

As Adani Green Energy continues to expand its renewable energy portfolio, investors and industry observers will be watching closely to see how this new subsidiary contributes to the company's overall growth strategy in the rapidly evolving clean energy sector.

Adani Green Energy shares have witnessed a significant rally, surging 8% to Rs 1,115.00 and accumulating a 13% gain over two sessions. This upward momentum follows the Securities and Exchange Board of India's (SEBI) clearance of Gautam Adani, Rajesh Adani, and several Adani Group companies from allegations made by Hindenburg Research in January 2023.

SEBI Clearance Boosts Investor Confidence

The market regulator found no evidence of wrongdoing related to the allegations made earlier this year, providing a much-needed boost to investor confidence in the Adani Group stocks.

Jefferies Raises Target Price

Following these developments, global brokerage firm Jefferies has raised its target price for Adani Green Energy to Rs 1,300.00, forecasting a 27% upside potential from current levels. The brokerage notes that the stock is currently trading at a 63% discount to its January 2023 peak on a forward EV/EBITDA basis, suggesting potential for further growth.

Capacity Expansion and Utilization Improvement

Jefferies projects significant capacity additions for Adani Green Energy:

• 4.5 GW in FY26
• 6.3 GW in FY27

The brokerage also expects utilization to improve above 30% from 24.8% in FY25, indicating enhanced operational efficiency.

Strengthened Balance Sheet

A promoter infusion of Rs 9,350.00 crore through warrants has bolstered the company's balance sheet. This capital injection is expected to contribute to an improvement in the company's financial health, with net debt to equity projected to ease from 6.9x to 5.4x by FY30.

Robust Power Purchase Agreements

Over 80% of Adani Green Energy's installed capacity is secured under 25-year power purchase agreements, providing long-term revenue visibility and stability for the company.

Strong Financial Performance

Adani Green Energy has reported impressive financial results:

The company's capacity has more than doubled since January 2023, growing by 120% to reach 16.1 GW. Additionally, EBITDA has shown robust growth, with a compound annual growth rate (CAGR) of 36% from FY22 to FY25.

As Adani Green Energy continues to expand its capacity and improve its financial metrics, the recent SEBI clearance and positive analyst outlook may provide further momentum to the stock's performance in the coming sessions.