Adani Green Share Price: Top Global Investors Like This Adani Firm, Invests $1.68 Billion

Adani Group-backed renewable energy platform, Adani Green Energy has emerged as a hot spot for investment by global investors. The latest to like Adani Green would be French energy giant Total Energies SE who will pump in a $300 million investment in its clean energy projects. This investment takes the total funding infused by global investors to the tune of $1.63 billion or about Rs 14,000 crore in Adani Green in recent times, due to its robust renewable energy capacity and healthy track record of delivering projects before schedule.

Last week, Adani Green entered into a binding agreement to create a new JV, equally owned by TotalEnergies and AGEL, with a 1,050 MW portfolio. Total Energies announced an equity investment of $300 million in the new JV which will further support their development.

The 1,050 MW portfolio will include a mix of already operational (300 MW), under construction (500 MW) & under development assets (250 MW) with a blend of both solar & wind power.

Furthermore, thanks to the new transaction, TotalEnergies will reinforce its strategic alliance with AGEL and support the company in becoming the Indian leader in renewable energy, with a target of 45 GW of renewable power capacity by 2030.

Following the deal, sources told PTI that AGEL is one company within the Adani Portfolio, which has attracted a range of investors over the past few months including repeat strategic investor Total, one of the largest emerging market funds GQG Capital Partners and one of the world's largest sovereign funds Qatar Investment Authority.

Accordingly, the sources said that together these three investors have invested $1.63 billion or close to Rs 14,000 crore over the past few months, taking advantage of the attractive valuations post the short-seller report.

The US-based boutique investment firm GQG Partners has taken a strong likeness to Adani Group-backed shares since March 2023 including Adani Green Energy where it invested Rs 2,806 crore in the company in the first tranche. As of June 30, 2023, GQG Partners shareholding in Adani Green stood at 5,53,70,895 equity shares or 4.29%. It has further increased!

According to the sources, GQG Partners has taken a 6.8% stake in AGEL while QIA picked up 2.7% IHC International Holding Company has another 1.3% stake.

Giving a rationale for these investments, the sources told PTI that India is now a leader in the renewable energy space, with dozens of solar and wind projects in the pipeline. Adani being the largest renewable power producer in India, with its strong execution ability and superior track record, is in an extremely sweet spot. This has made Adani the largest solar power producer in India as well as one of the lowest-cost renewable power producers in the world.

Adani Green is leading the way towards large-scale adoption of affordable clean energy in India. By the end of the June 2023 quarter, the company's renewable capacity lock-in growth of a total of 20,434 MW --- of which -- 8,316 MW were operational, 10,219 MW were under execution and 1,899 MW were near construction. The company aims to touch 45,000 MW BY 2030 -- which is 10% of India's renewable energy target.

According to the sources, with its capacity target to reach 45 GW, it has the potential to deliver 6x growth from FY23 and FY30. They added that around 40 GW worth of resource assessment has already been done - sites, geotechnical studies, sourcing equipment etc.

Further, in Q1FY24, the company's operational capacity increased by 43% to 8,316 MW YoY with the addition of 1,750 MW solar--wind Hybrid, 212 MW solar and 554 MW wind power plants over the last year. While its solar portfolio CUF is at 26.9% with 40 bps improvement YoY. Additionally, wind portfolio CUF is at 38.7% with an 830 bps reduction YoY, primarily due to relatively lower wind speed, which was higher last year. Further, overall Hybrid portfolio CUF stands at a strong 47.2%.

Adani Green's sales of energy increased strongly by 70% YoY at 6,023 mn units in Q1 FY24 vs. 3,550 mn units in Q1 FY23. In the quarter, Adani's fully funded growth was ensured through the Revolving Construction Framework Agreement of $1.64 billion.

Further, Adani Green has world-class project execution with a track record of executing projects ahead of schedule. It has already done the work of strategic sites with a generation potential of ~40 GW with geotechnical, resource analysis & design, while over 20,000 vendor relationships ensure effective and timely execution. Also, Adani Green has a 25-year long-term PPA, under which 86% sovereign/sovereign equivalent rated counterparties reduce counterparty risk.

The company develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects. AGEL is focused on the decarbonization of power generation and is helping India meet its sustainability goals.

Adani Green Share Price:

Adani Green shares dived by at least 1.5% on Monday to touch the intraday low of Rs 1002.30 apiece, compared to the previous session's closing price of Rs 1017.35 apiece on BSE. Nevertheless, the stock floats over the critical Rs 1,000 mark.

At the time of writing, Adani Green traded at Rs 1011.40 apiece, down by 0.6%. Its market cap stood over Rs 1.60 lakh crore.

Adani Green is among the top 5 most valued firms of Adani Group in terms of market share.