Adani Green Energy Limited (AGEL), a leading player in India's renewable energy sector, has taken a significant step towards expanding its clean energy portfolio. The company's wholly-owned subsidiary, Adani Renewable Energy Holding Eleven Limited (AREH11L), has incorporated two new wholly-owned subsidiaries focused on renewable energy generation.

New Subsidiaries

The two newly incorporated entities are:

1. Adani Ecogen One Limited (AE1L)
2. Adani Ecogen Two Limited (AE2L)

Both companies were registered on September 19, with the Registrar of Companies, Gujarat at Ahmedabad. Each subsidiary has been established with an authorized and paid-up capital of Rs. 1,00,000.

Business Objectives

The primary objective of both AE1L and AE2L aligns closely with AGEL's core business focus. They are set to:

• Generate, develop, and distribute electrical energy
• Utilize renewable sources such as wind and solar energy
• Transform, transmit, and supply power generated from these clean energy sources

Current Status

As of now, neither AE1L nor AE2L has commenced business operations. This strategic move by Adani Green Energy Limited appears to be a preparatory step for future expansion in the renewable energy sector.

Industry Impact

This development underscores AGEL's commitment to strengthening its position in the renewable energy power generation industry. By creating these new subsidiaries, the company is laying the groundwork for potential growth and increased capacity in clean energy production.

Corporate Structure

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

• Adani Green Energy Limited (Parent Company)
  • Adani Renewable Energy Holding Eleven Limited (Wholly-owned subsidiary)
    • Adani Ecogen One Limited (Wholly-owned subsidiary of AREH11L)
    • Adani Ecogen Two Limited (Wholly-owned subsidiary of AREH11L)

This structure allows for focused management and potentially streamlined operations in different aspects of renewable energy generation.

Regulatory Compliance

AGEL has duly informed the stock exchanges about this development, in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

As the renewable energy sector continues to gain prominence in India's power landscape, Adani Green Energy's latest move signals its intent to capitalize on the growing opportunities in clean energy generation and distribution.

Shares of Adani Green Energy Ltd. witnessed a significant uptick, rising over 3% following a crucial development in the ongoing Hindenburg Research controversy. The Securities and Exchange Board of India (SEBI) has cleared the company and its Chairman, Gautam Adani, of allegations related to routing funds through three entities to conceal related party transactions.

Market Response and Analyst Outlook

The stock demonstrated strong performance, trading 3.59% higher at Rs 1,014.05. Notably, the trading volume surged to 25 times its 30-day average, indicating heightened investor interest following the SEBI clearance.

Jefferies, a prominent brokerage firm, maintained its bullish stance on Adani Green, reiterating a 'Buy' rating with a target price of Rs 1,300. The brokerage highlighted management's confidence in the company's ambitious expansion plans, which aim to increase capacity from the current 14 GW to 50 GW by 2030.

Capacity Expansion and Future Projections

Jefferies estimates suggest that Adani Green is on track to add 4.5 GW and 6.3 GW of capacity in upcoming periods. The company's management has reaffirmed its guidance of adding 5 GW of capacity, aligning closely with these projections.

A significant portion of Adani Green's expansion strategy involves the development of a massive 30 GW renewable energy project at Khavda. This project forms a crucial part of the company's overarching goal to achieve 50 GW of renewable energy capacity.

Analyst Consensus and Stock Potential

The positive sentiment surrounding Adani Green is reflected in the broader analyst community. Six out of seven analysts covering the stock have issued 'Buy' ratings. The consensus target price stands at Rs 1,240.40, suggesting a potential upside of 22.32% from current levels.

This favorable outlook from analysts, coupled with the recent SEBI clearance, appears to have bolstered investor confidence in Adani Green's growth prospects and operational integrity.

As the renewable energy sector continues to gain prominence in India's energy landscape, Adani Green's ambitious expansion plans and the recent regulatory clearance position the company as a key player to watch in the coming years.