Adani Firm Gets Green Light For Investment From French Energy Giant, Shares Still Slide

Adani Green Energy’s board has given the green light for the creation of a new 50:50 joint venture company with France’s TotalEnergies. This monumental partnership involves an additional investment of $300 million (₹2,500 crore) by the French energy giant.

What Happened: The joint venture is poised to manage a substantial portfolio with a capacity of 1,050 megawatts alternating current. This portfolio encompasses a diverse mix of assets, including those already in operation, under construction and under development. The portfolio consists of both solar and wind power.

Adani Green Energy has said the transaction details are currently in discussion and are contingent upon customary approvals and conditions.

See Also: Sony Merger Leads To Zee Entertainment’s Exit From FTSE Indices: Here’s What You Need To Know

Why It Matters: It’s worth noting that this collaboration represents a change in TotalEnergies’ position, as it had previously paused a $4 billion (₹33,250 crore) green hydrogen project with the Adani Group in response to allegations made by Hindenburg Research regarding stock price manipulation and undisclosed transactions. The Adani Group has consistently refuted these allegations.

TotalEnergies currently holds a 19.75% stake in Adani Green Energy, making it the second-largest shareholder after the promoters, who have a 56.27% stake. Additionally, TotalEnergies and the Adani Group jointly operate Adani Total Gas, a listed venture.

In July, the renewable energy arm of the Adani Group announced its plans to raise ₹12,300 crore through a public share sale to institutional investors, further solidifying its presence in the renewable energy sector.

Price Action: Adani Green’s share price was trading around 0.44% lower at ₹1,000.55 in late afternoon trade on Wednesday.

Read Next: Mark Zuckerberg’s WhatsApp To Let Indian Users Pay Via Rival Payment Methods

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: EquitiesNewsAsset SalesMarketsMoversTrading IdeasAdani GreenAdani GroupAdani Total GasTotal Energies