Snapping a three-day losing streak, shares of Adani Green Energy Ltd were trading 2 per cent higher in Friday's trade amid a report that suggested TotalEnergies SE is in talks to invest in renewable energy projects developed by the Adani group company. It would potentially mark the first public deal between the French oil giant and he Gautam Adani-led group since Hindenburg Research levelled fraud allegations against it, saying the group companies were engaged in brazen stock manipulation and accounting fraud schemes over the course of decades. The Adani Group has denied wrongdoing.
Following the fresh news, the stock reclaimed the Rs 1,000 level, rising 2.45 per cent to hit a high of Rs 1,008 on BSE. This stock had settled lower in the previous three sessions.
As per the Bloomberg report, Total is looking to buy stakes in some of Adani Green’s projects as part of its drive to expand its portfolio of clean energy projects. The French group could invest about $700 million in total into the projects, sources told Bloomberg. Deliberations are ongoing and there’s no certainty for a transaction, Bloomberg reported.
The Hindenburg Research report had eroded $150 billion in the group market capitalistaion, but the Adani group stocks are on a recovery mode. Shares of Adani Green Energy have recovered about 117 per cent from Ferbuary low.
The Gautam Adani-led Adani Group recently said it improved its liquidity position through strategic initiatives, increasing the cash balance to Rs 42,115 crore at the end of June quarter. This was the highest-ever cash balance, Rs 1,764 crore higher than at the end of the preceding March quarter, the Adani group said in a statement.
The portfolio companies diligently focused on bolstering their financial standing, ensuring a robust foundation for their ambitious projects, it said. Adani Group said its portfolio’s net debt to Ebitda (run-rate) fell below 3 times — at 2.81 times for the first time in the last ten years.
Adani Group noted that the promoter level entity generated Rs 30,900 crore (does not include recent stake sale in Adani Power to GQG Partners) through secondary market transactions since March 2023. It said its conservative planning has provided for a robust maturity cover.