What Is Hindenburg Who Said The Crime? Adani Green With Record Gains; 43% Increase In Production Capacity

After the release of a negative report by US short-selling firm Hindenburg Research last January, the Adani Group, headed by prominent Indian businessman Gautam Adani, restructured the capital allocation aimed at the development projects of the companies under it. Meanwhile, Adani Green Energy, a company operating in the renewable energy sector, has reported a significant increase in its production capacity.

Additional productivity 43%

Adani Green Energy has achieved a 43% increase in production capacity during the April-June 2023 period, the Adani Group said in a filing with the stock exchange. A total increase of 2,476 MW in generation capacity has been achieved during the last 3 months. 1,750 MW in hybrid form of solar and wind, 212 MW from solar projects and 554 MW from wind power generation each, added to the power generation capacity in the first quarter of the current fiscal.

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India’s largest company

With this, Adani Group’s total operational generation capacity in the renewable energy sector has risen to 8,316 MW. It also holds the distinction of being India’s largest renewable energy company. The company aims to be completely carbon-free by 2050. Meanwhile, Adani Green aims to generate 45 GW of renewable energy by 2030. The company’s report indicates that along with the increase in capacity, the volume of energy sold has also increased by 70%.

Adani Green Energy

After the company’s gain, the shares of Adani Green Energy also showed a revival. The stock is currently trading at a level of Rs.970. In January 2023, after Hindenburg came forward with allegations of manipulation of share prices, the Adani Group’s shares took a massive tumble. But the Adani Group defended the allegations by calling Hindenburg’s allegation baseless and repaying part of the debt before maturity.

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The shares of Adani Group, which suffered a heavy setback in the months of January and February, began to recover during the month of March when GQG Partners in the United States invested 187 million dollars. Shares of Adani Green have already recovered but still stand 55% below their year-ago period.

Adani: Indebtedness

In 2013, Adani Group’s leverage ratio was 7.6 times. It has reduced to 3.2 times in March 2022. But the ratio increased to 4.1 times during the financial year 2022-23. Adani Group’s total debt currently stands at Rs 2.27 lakh crore. The Adani Group aims to reduce its debt-to-operating profit ratio to 3.1 times by the end of the financial year 2023-24.