Adani Green shares tank 8% to hit new 52-week low as TotalEnergies pauses fresh investments

Adani Green Energy Ltd (AGEL) shares continued to dwindle in Tuesday's trade after France-based TotalEnergies said it won't make any new financial contribution as part of its investments into the Adani group of companies amid a US federal indictment against its chief Gautam Adani and his nephew Sagar.

The stock slumped 7.72 per cent to hit a fresh one-year low value of Rs 893. It was last seen trading 6.51 per cent down at Rs 904.70. At this price, the scrip has lost 37.55 per cent in the past five sessions.

Bourses BSE and NSE have put the securities of Adani Green under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The Indian conglomerate, on its part, has denied the US court's allegations and called them "baseless".

TotalEnergies has learnt through public announcements made by the US authorities of the indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of AGEL, the French company stated.

"This indictment does not target AGEL itself, nor any AGEL-related companies. In accordance with its code of conduct, TotalEnergies rejects corruption in any form. TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority (19.75 per cent) shareholder of AGEL and as a joint-venture partner (50 per cent) in project companies with AGEL," it added.

"Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies. TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme," the company further stated.

AGEL, however, clarified that "there is no new financial commitment under discussion with TotalEnergies."

The company's stock has a negative price-to-equity (P/E) ratio of 2128.87 against a price-to-book (P/B) value of 20.24. Earnings per share (EPS) stood at (-)0.45 with a return on equity of (-)0.95.

As of September 2024, promoters held a 60.94 per cent stake in AGEL.