TotalEnergies Invests $300 Million in Adani Green Energy's Renewable Ventures

Adani Green Energy Ltd (AGEL) has concluded a $300 million renewable energy joint venture with French energy giant TotalEnergies, according to an exchange filing on December 27. As part of this collaboration, TotalEnergies has invested in AGEL's subsidiary, acquiring a 50% stake in projects with a combined capacity of 1,050 MW. The binding agreement for this joint venture was initially announced in September 2023.

In a further strategic move, AGEL aims to raise ₹9,350 crore by issuing preferential warrants to its promoters. The board has approved the issuance of 63.14 million warrants at ₹1,480.75 each to promoter entities Ardour Investment Holding Ltd and Adani Properties Pvt. Ltd. This infusion of capital, earmarked for deleveraging and accelerating capital expenditure, supports AGEL's ambitious target of achieving 45 gigawatts (GW) of green energy capacity by 2030.

Power Purchase Agreement

Simultaneously, AGEL has executed a power purchase agreement with the Solar Energy Corporation of India for the supply of 1,799 megawatts of solar power. This marks the final step in fulfilling a 2020 tender where Adani Green Energy secured an 8,000 MW manufacturing-linked solar project. On  27 December the company's stock surged  3.60%, reaching a high of Rs 1,657.50.

Adani Green Energy's stock Performance

However, amidst these developments, both the BSE and NSE have imposed the Additional Surveillance Measure (ASM) framework on Adani Green Energy's securities. This regulatory intervention is a precautionary measure aimed at cautioning investors about potential volatility in share prices.

Adani Green Energy's stock has been on a rollercoaster lately. In the last month, it went up by 52.57%, making investors happy. Zooming out a bit, over the past 6 months, it jumped even higher, soaring by 67.98%. However, the past year wasn't as great, showing a decrease of -15.81%.

Now, if we take a longer view, the past 5 years have been incredible, with an astonishing growth of 3,753.60%. Adani Green Energy has come a long way over the years, making it an interesting stock to watch in the renewable energy sector.

Final Words

Adani Green Energy's recent financial moves and strategic partnerships position the company as a key player in the renewable energy sector, furthering its commitment to sustainable and green initiatives. The ongoing investments and power agreements highlight AGEL's role in India's renewable energy landscape.