Ardour Investment Holding Ltd., a promoter of Adani Green Energy Ltd, has converted over 7.61 lakh warrants into the same number of equity shares. The total value of this conversion is ₹84.6 crore, according to the company’s stock exchange filing on Wednesday.
Warrants are like a future promise to buy equity. They give its holder the right to buy a company’s shares at a fixed price within a certain period. However, equity holders enjoy direct ownership in the company. They have voting rights, receive dividends, and benefit from any rise in the company’s share price.
With this move, the promoter group’s shareholding in Adani Green has gone up slightly from 61.14% to 61.16%. Though the increase is small, it reflects continued promoter confidence in the company.
In January 2024, Adani Green had allotted 6.3 crore convertible warrants to Ardour on a private placement basis. This was done to raise funds through a preferential allotment. Each warrant was priced at ₹1,480.75, out of which ₹370.19 was paid upfront at the time of allotment.
Out of the remaining 5.48 crore warrants, Ardour has now exercised 7,61,688 warrants. These were converted into equity shares with a face value of ₹10 each. The board approved the conversion after receiving the balance payment of ₹1,110.56 per warrant, which is 75% of the total issue price.
As per the agreed terms, Ardour can convert the rest of the 5.4 crore warrants into shares anytime before July 24, 2025. The newly issued shares will enjoy the same rights as existing shares, including dividends and voting rights.
Just a day before this, Adani Green had allotted another 37.98 lakh equity shares to Ardour after a similar conversion. However, the market response was mild. On the BSE, Adani Green share price ended 0.65% lower at ₹917.4, while the Sensex gained 0.13%. The stock has declined 47% over the past 12 months and is down 12% in 2025 so far.
At 10:25 AM, Adani Green Energy share price was up 0.29% and was trading at ₹919.95.
The promoter’s move to convert warrants shows a continued investment in Adani Green. More conversions may follow, boosting promoter stake further.
Read more on: Which Adani Group Company Delivered Highest Profits in Q4FY25?
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: May 8, 2025, 10:45 AM IST
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