TotalEnergies move to reportedly sell up to a 6 per cent stake in Adani Green Energy Ltd (AGEL) signals a strategic recalibration in global renewable energy capital flows, even as India’s clean energy growth story remains intact. Industry reports suggest that the proposed stake sale could be worth nearly ₹10,200 crore, based on AGEL’s current market capitalization of about ₹1.69 trillion.
In January 2021, the French energy giant had bought a majority stake of 19.75 per cent of AGEL at a value of circa 2.5 billion dollars as a wider strategy to increase its presence in renewable energy activities in India and access the rapidly growing portfolio of solar and wind energy assets directly. The current holding in Adani Green of TotalEnergies is worth nearly $8 billion, and the company has been reported to be seeking to cash in a portion of its stake in Adani Green to secure huge profits.
Also Read: Why These 7 CleanTech Founders Are the Face of Green Transition
In September, TotalEnergies CEO Patrick Pouyanne had already signalled the possibility of a sale. Pouyanne said, "If I were able to sell a quarter of my shares to recoup my $2 billion and to be neutral, I would be very happy." The potential transaction aligns with TotalEnergies’ focus on debt reduction and capital discipline. The company is considering the sale of additional renewable assets in Asia and has indicated that it would cut annual capital use by $1 billion by 2027-2030 as part of a 7.5 billion cost savings initiative.
Established in 2015, Adani Green has emerged as one of India’s largest renewable power companies, operating more than 16.6 GW of green energy capacity with a target of 50 GW by 2030. Despite earlier pauses on new investments amid regulatory scrutiny, Pouyanne reiterated in June that, "On the renewable side, we continue to support the expansion of Adani Green, which already has 14 gigawatts of capacity. So, we will continue to support this growth."
We use cookies to ensure you get the best experience on our website. Read more...
