Adani Group now bright spot for global investors

3 investors have invested Rs14,000cr over the past few months, taking advantage of the attractive valuations post the short-seller report

French energy giant TotalEnergies SE’s $300 million investment in clean energy projects of Adani Green Energy Ltd has taken the total investments poured in by global investors in India’s largest renewable power producer to $1.63 billion or about Rs14,000 crore, sources close to the company said.

Last week, Total announced it will hold a 50 per cent stake in the new joint venture firm where Adani Green Energy Ltd (AGEL) will hold the rest. The joint venture will hold a portfolio of 1,050 MW, including 300 MW of already operational capacity, 500 MW under construction and 250 MW under-development assets with a blend of solar and wind power.

Total already has a 19.7 per cent stake in AGEL. It also has an equal joint venture with AGEL, called AGE23L that holds a portfolio of 2,353 MW. The $300 million investment Total is making in the joint venture is the first since the Hindenburg report in January highlighted Adani Group’s debt pile and alleged accounting fraud and stock manipulation, which Adani denies. Sources said 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.

Together these three investors have invested $1.63 billion or close to Rs14,000 crore over the past few months, taking advantage of the attractive valuations post the short-seller report, they said.

GQG Partners has taken a 6.8 per cent stake in AGEL while QIA picked up 2.7 per cent. IHC International Holding Company has another 1.3 per cent stake. Explaining the rationale of the investments, sources said India is now a leader in the renewable energy space, with dozens of solar and wind projects in the pipeline.