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New Delhi: Adani Green Energy’s shares dropped by over 1.5 per cent amidst a sluggish market, even though the company declared it had entered into a joint venture with TotalEnergies Renewables Singapore. This involves a $444 million investment into a new entity.
This follows a $300 million agreement between the company and the French oil giant to develop renewable energy capacity in India, which still predominantly relies on coal for its energy needs.
The joint venture will encompass a solar power portfolio of 1,150 MWac (Mega-Watt Alternating Current), combining operational and assets under execution, featuring both merchant and PPA-based (Power Purchase Agreement) projects. Adani Green Energy and TotalEnergies will each hold a 50 per cent stake in the new entity, according to a statement from Adani Green Energy.
The details of the transaction are being negotiated and are contingent on standard approvals and conditions, the company noted. TotalEnergies, via its affiliates, owns approximately a 20 per cent share in Adani Green.
In the quarter ending June, Adani Green Energy’s consolidated net profit surged by 95 per cent to Rs 629 crore, up from Rs 323 crore in the same period last year.
Jefferies has recently begun covering the Adani Group company with a ‘Buy’ rating, citing strong industry tailwinds that are expected to enhance the green energy firm’s prospects.
As of 9:59 am, shares of Adani Green Energy were trading down by 1.3 per cent at Rs 1,920.10 on the National Stock Exchange (NSE). The stock has appreciated about 20 per cent this year, surpassing the Nifty’s 16 per cent gains. Over the past 12 months, the stock has soared by 100 per cent, doubling the investment of shareholders, while the Nifty has increased by 29 per cent in the same timeframe.
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