Adani Green Energy stock dips despite $444 mn JV with TotalEnergies

In the past 12 months, Adani Green Energy stock has risen 100 percent, doubling investors' capital. In comparison, Nifty rose 29 percent during this period.

Shares of Adani Green Energy fell over 1.5 percent on September 2 amid weak markets. This is despite the company announcing that it has signed a binding agreement for a JV with TotalEnergies Renewables Singapore, involving an investment of $444 million into a new entity.

This comes after the company and the French oil major had inked a $300 million deal to build renewable capacity in India, where the bulk of energy requirements are still met by coal.

The joint venture will house a 1,150 MWac (Mega-Watt Alternating Current) solar power portfolio in a mix of operational and under execution assets, with a blend of both merchant-based as well as PPA-based projects. Adani Green and TotalEnergies will each own 50 percent stake in the resultant entity, Adani Green Energy said in a release.

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The transaction details are under discussion and subject to customary approvals and conditions, the company added. TotalEnergies, through its affiliate entities, holds a nearly 20 percent stake in Adani Green.

For the quarter ended June, Adani Green Energy reported 95 percent jump in consolidated net profit at Rs 629 crore, compared to a net profit of Rs 323 crore in the year-ago period.

Jefferies recently initiated coverage on the Adani Group firm with a 'Buy' rating, saying strong industry tailwinds are poised to boost the outlook for the green energy player.

At 9:59 am, Adani Green Energy shares were trading 1.3 percent lower at Rs 1,920.10 on the National Stock Exchange (NSE). The stock has gained around 20 percent so far this year, outperforming Nifty's returns of 16 percent. In the past 12 months, the counter has risen 100 percent, doubling investors' capital. In comparison, Nifty rose 29 percent during this period.

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