Shares of Adani Green were in the red on Tuesday, along with most other Adani Group stocks, despite the renewable energy firm entering a massive joint venture with a French multinational energy firm.

What Happened: Adani Green Energy has entered a binding agreement with TotalEnergies Renewables Singapore to establish a joint venture (JV), with an investment of $444 million (₹3,727 crore), according to an exchange filing on September 2.

The newly formed JV will manage a 1,150-megawatt alternating current solar power portfolio that includes a mix of operational and under-construction assets. This portfolio will feature both merchant-based and power purchase agreement-based projects, reflecting a diverse approach to solar energy generation.

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Equal Partners: In the joint venture, both Adani Green Energy and TotalEnergies will each hold a 50% stake in the equity share capital of the new entity. Adani Green Energy noted that the specifics of the transaction are still under discussion and will require customary approvals and conditions before finalisation.

Adani Green Energy highlighted that while its renewable energy capacity has seen substantial growth, further expansion is essential to keep pace with rising demand. The company has set an ambitious target to add 35 gigawatts of solar capacity and 9 gigawatts of wind capacity annually to meet its 2030 goals. This aligns with India’s broader objective of achieving 500 gigawatts in non-fossil power capacity by the year 2030.

TotalEnergies, through its affiliate entities, already holds a 19.75% stake in Adani Green, underscoring the ongoing partnership between the two companies in the renewable energy sector.

Brokerage Call: Jefferies has recently initiated coverage on Adani Green with a “buy” rating, citing favourable industry conditions that are likely to enhance the company's growth outlook.

This joint venture marks another significant step for Adani Green Energy as it continues to expand its footprint in the renewable energy sector, reinforcing its commitment to contributing to India's green energy targets.

Price Action: Adani Green Energy’s share price was down 1.47% at ₹1,917.15 in early trade on Tuesday. Most other Adani Group stocks were trading between 0.26% and 1.68% lower.

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