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Adani Green Energy shares gain as the company announces deal with French giant Total

Kshitij Bhargava

Share price of Adani’s renewable energy unit Adani Green Energy Limited jumped 4.98 per cent today after the company on Wednesday announced that it has entered into a binding arrangement with Total Gas & Power Business Services SAS, a French energy giant. Adani Green was trading at a price of Rs 213 in the initial hours of trade. Total will invest approximately $510 million into Adani’s green initiative that will see the company acquire 50% stake in a joint venture, housing solar projects of the company.

In a press release, the company said," Adani Green Energy Limited (AGEL) and Total Gas & Power Business Services SAS (TOTAL) have entered into a binding arrangement for investment of approximately USD 510 Million for acquisition of 50% stake and other instruments in a Joint Venture Company (JVCo) which will house 2,148 MWac operating solar projects presently 100% owned by AGEL. The balance 50% stake in the JVCo shall be held by AGEL."

Adani Green Energy is one of the biggest renewable energy companies in India with $2 billion in assets, spread across 11 states in the country. Currently, the project portfolio of Adani Green Energy stands at 5,290 MW.

Adani Group Chairman, Gautam Adani has hailed the deal as the group’s commitment towards sustainable development. "The investment reinforces the immense potential in India's renewable energy sector, as well as Adani group commitment towards sustainable development. This is a pivotal step in our journey towards building the world's largest solar power company by 2025 and the world's largest renewable power company by 2030," he added.

Adani group companies were all trading in the green. Adani Gas Limited was up 1.32 per cent; Adani Transmission Limited gained 0.93 per cent; Adani Power Limited moved up 0.82 per cent while Adani Enterprises limited jumped 2.01 per cent. Additionally, Adani Transmission Limited announced that its subsidiary has completed the issuance of USD 1 billion bonds with an over-subscription.

Domestic benchmark indices S&P BSE Sensex was down 100 points or 0.24 per cent at 41,206 points, while 50-stock Nifty was trading at 12,098.45 points down 39.50 points or 0.33 per cent.