Big Deal in Adani Green Energy
A large block deal in Adani Green Energy Ltd (AGEL) took place on Wednesday, involving about 1.7% of the company’s equity, valued at Rs 2,718 crore. This means that 2.8 crore shares were sold at Rs 970 per share, which is a 2.9% discount to the stock's previous closing price.
Who Was Involved in the Deal?
Although the parties involved in the transaction have not been officially disclosed, it is believed to be related to French energy major TotalEnergies, which was planning to sell around 1.5% stake in Adani Green Energy via block deals. The floor price for the planned sale was also set at Rs 970 per share, and Jefferies was said to be the broker to the deal.
How Did the Stock React?
Adani Green Energy shares rose 1.5% to Rs 1,014 in the morning trade, extending the previous session's gain. The stock had closed at Rs 1,010.5 on Tuesday, up 1.7% for the day. However, the stock is now down 3.2% so far this year. It trades at a price-to-earnings (P/E) ratio of 84.9, with a market capitalization of Rs 1.7 lakh crore.
Background of the Deal
TotalEnergies, through its investment vehicles, held a combined 18.99% stake in AGEL as of September 30. The French company had invested $2.5 billion in AGEL and its solar portfolio in 2021, and the value of that investment has risen significantly. The AGEL-TotalEnergies partnership has deep roots, starting in 2020 with a 50:50 joint venture to operate 2.3 GW of solar assets.
- The partnership has since expanded through additional joint ventures in 2023 and 2024, taking total platform capacity to 4.5 GW.
- The deal is part of a broader trend of renewable energy investments and sustainable energy initiatives.
This development is significant for the renewable energy sector and Adani Group, and investors should keep a close eye on the market trends and stock market news.