Qatar Investment Authority buys over 2.5% stake in Adani Green, promoter group co offloads almost entire stake

The ESG-focused (environmental, social, and governance) fund has reportedly made two investments in Adani Group companies, the first being Adani Electricity Mumbai Ltd. (AEML). In 2020, QIA bought a 25.1% share in AEML, a subsidiary of Adani Energy Solutions Ltd, which operates Mumbai, India’s energy distribution company, as per the report.

Infinite Trade and Investment, a promoter group company of Adani Green Energy, sold a 2.8% share in the company on Monday for ₹4,131 crore in an open market transaction, according to exchange data. The deal size increased to about ₹4,131 crore when the promoter firm sold 4,48,82,500 shares, or 2.8% of the outstanding shares, at a price of ₹920.43 per share.

According to market data, INQ Holding LLC, a wholly-owned subsidiary of Qatar Investment Authority, purchased 4.26 crore shares, or 2.68% of Adani Green Energy. The shares were purchased at an average cost of ₹920 apiece, making the total transaction amount of ₹3,920 crore.

Following the transaction, Infinite Trade and Investment’s shareholding in Adani Green Energy dropped from 3.37% to 0.57%. At the end of the June quarter, promoters and promoter group owned a 56.27% share in the company.

Qatar Investment Authority (QIA), according to industry insiders, is one of the biggest sovereign funds in the world, according to PTI’s news report.

“It has invested USD 500 million AGEL. With this investment, QIA will hold a little over 2.5 per cent (stake) of AGEL,” one of the sources said. AGEL has an operational portfolio of 8.3 GW renewable energy capacity, which includes a total locked-in portfolio of 20.4 GW. The company aims to build 45 GW capacity by FY30. Last month, Adani Group Chairman Gautam Adani said, “Our focus remains on producing the lowest cost electron and I would like to reaffirm our target of 45 GW of renewable energy capacity by FY30. With this, AGEL will own more than 10 per cent share of India’s overall renewable energy market,” said PTI in its news report.

On Monday, Adani Green share price closed 4.69% lower at ₹965.05 apice on BSE. 

Also Read: Adani Green share price declines 7% on block deal buzz

Updated: 07 Aug 2023, 08:52 PM IST