After Qatar Investment Unit purchases a 2.7% stake, Adani Green Energy rises more than 4%

After Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), purchased a 2.7% interest in the business for Rs 3,920 crore on Monday, shares of Adani Green Energy Ltd rose by about 5% in early trading on Tuesday.

According to bulk deal data on the BSE, Infinite Trade and Investment, a promoter unit of the Adani Group, sold 4.5 crore shares, or 2.8% of its equity, for Rs 920.43 for a total sum of Rs 4,142 crore in an open market transaction.

Following Adani Electricity Mumbai Ltd (AEML), this is the second investment the ESG-focused fund has made in an Adani Group entity. The energy distribution company in Mumbai, India, is owned by Adani Energy Solutions Ltd., a subsidiary of which QIA acquired a 25.1% share in AEML in 2020.

 

The stock was up 32.8 points, or 3.43 percent, to Rs 999 a share on the NSE at 11:10 a.m. Over the last six months, the stock has increased by more than 24%.

 

4.26 billion shares, or 2.68 percent of Adani Green Energy, were purchased by INQ Holding, a fully-owned subsidiary of QIA. The average cost per share paid for the shares brought the transaction value to Rs 3,920 crore.

 

Following the purchase, Infinite Trade and Investment’s ownership in Adani Green Energy dropped from 3.37 percent to 0.57 percent.

 

The Adani Group’s promoter firms have been selling large shares in group businesses to pay off share-backed debt. GQG Partners had already acquired shares in the businesses at different points, some of them through promoters.

 

GQG increased its ownership in Adani Green from 3.50 percent to 6.32 percent at the time at a cost of Rs 9,600 crore ($1.17 billion).

 

The operational portfolio of Adani Green Energy is 20.4 GW. The business posted a combined profit of Rs 323 crore, up 51% from the equivalent quarter in fiscal 2022 when it was Rs 214 crore. The total revenue increased by 41% to Rs 2,404 crore. By 2030, AGEL wants to increase its renewable energy capacity to 45 GW, with the main drivers being solar, wind, and solar-wind hybrid technologies.