Adani Green shares fall after report of TotalEnergies' 6% stake sale

Adani Green shares fall after report of TotalEnergies' 6% stake sale

Shares of Adani Green Energy fell over 1% to Rs 1,018.6 apiece on November 24 as a report said French energy giant TotalEnergies plans to sell up to a 6% stake in the Adani Group firm.

TotalEnergies looks to book gains after its $2.5 billion investment in 2021, which rose in value to about $8 billion, Economic Times reported, citing people familiar with the matter.

The proposed stake may be offered to Adani Green for evaluation, as per the report.

In September, TotalEnergies announced plans to cut annual capital spending by $1 billion and sell more power assets, which failed to ease market concerns over after debt rise.

The French energy major currently holds almost 19% in Adani Group’s renewable energy arm through two subsidiaries — 15.58% via TotalEnergies Renewables Indian Ocean Ltd and 3.41% through TotalEnergies Solar Wind Indian Ocean Ltd.

At Adani Green’s current market capitalisation of Rs 1.69 lakh crore, Total’s 6% stake sale could fetch the company around Rs 10,200 crore (about $1.14 billion).

Total acquired a 20% minority stake in AGEL and 50% ownership in its operating solar portfolio (over 2 GW) in January 2021 for $2.5 billion, aligning with the French major’s renewable energy ambitions. The investment also gave Total a seat on AGEL’s board.

Founded in 2015, Adani Green is one of the largest renewable companies in India. It has over 16.6 GW of operational renewable capacity and aims to reach 50 GW by 2030.