Adani Green Energy share rises 26% in three sessions, here's why

Share price of Adani Green Energy hit a fresh all-time high today and closed at 5% upper circuit, after the Gautam Adani-led group was ranked top solar power generator globally. The stock has risen 26.39% in the 3 days of consecutive gains.  

As per the latest ranking of global solar companies by Mercom Capital, Adani Group was ranked as the number 1 global solar power generation asset owner in terms of operating, under construction, and awarded solar projects.

Adani Green is the only Indian developer among the top 10 globally and currently tops global solar developer with 2.3 GW of operational projects, 2 GW under construction, and 8 GW of awarded projects (with contracted PPAs) for a total capacity of 12.3 GW, as per the ranking renewable energy consultancy Mercom Capital Group.

The ranking came after Adani Green Energy bagged a manufacturing-linked solar contract in June from the Solar Energy Corporation of India (SECI) to develop 8 GW of projects, valued at Rs 45,000 crore, or $6 billion.

Adani Green Energy stock was the biggest gainer in the BSE's 'A' group. Adani Green Energy share price opened 2.63% higher today and rose 5% intraday to Rs 573.3, its fresh all-time high against the previous close of Rs 546 on BSE. Adani Green Energy share stands higher than 5, 20, 50, 100 and 200-day moving averages.

In one month, the share has gained 68% and risen 244% since the beginning of this year. Adani Green Energy's market capitalisation closed at Rs 89,655 crore on BSE.

"In terms of under construction and awarded capacity, Mercom Capital further gives top position to Adani Green with 10.1 GW of projects largest solar player in the world in a short span of just 5 years, with a target to achieve an installed generation capacity of 25 GW of renewable power by 2025," the company said.

"We expect our renewable energy platform will create new possibilities for our core business," Chairman Gautam  Adani said.

"Adani's renewable energy portfolio exceeds the total capacity installed by the entire United States solar industry in 2019 and will displace over 1.4 billion tonnes of carbon dioxide over the life of its assets.  The group is one of the most fully integrated solar players in the world, manufacturing solar cells and modules, undertaking project development, construction, financial structuring and owning and operating its assets through its robust internal asset management platform," the  Adani Group firm said.

As per recent reports, Adani Green Energy is in talks to raise $1.35 billion through an offshore loan to fund construction of four projects over the next couple of years. The company has reportedly begun discussions with lenders such as Standard Chartered Bank, JPMorgan, MUFG, Barclays, DBS Bank and Qatar National Bank, among others.

In Q4 of last fiscal, the firm posted a consolidated net profit of Rs 55.64 crore helped by lower expenses. The clean energy firm had logged a consolidated net loss of Rs 94.08 crore in the corresponding quarter a year ago.

The share closed 5% or Rs 27 higher at Rs 573.3 on BSE.

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