Shares of Adani Green Energy Ltd surged nearly 5 per cent in early trade on Tuesday after Qatar’s sovereign wealth fund, Qatar Investment Authority (QIA), acquired a 2.7 per cent stake in the company for Rs 3,920 crore on Monday.
Infinite Trade and Investment, a promoter entity of Adani Group, sold 4.5 crore shares, or 2.8 per cent of its equity, at Rs 920.43, for a total amount of Rs 4,142 crore through an open market transaction, according to bulk deal data on the BSE.
This is the second investment by the ESG-focused fund in an Adani Group company after Adani Electricity Mumbai Ltd (AEML). In 2020, QIA bought a 25.1 per cent stake in AEML, a subsidiary of Adani Energy Solutions Ltd which owns the electricity distribution business in Mumbai, India.
At 11:10 am, the stock was trading 32.8 points or 3.43 per cent higher at Rs 999 per share on the NSE. The stock has surged over 24 per cent in the last six months.
INQ Holding, a wholly-owned subsidiary of QIA, acquired 4.26 crore shares or 2.68 per cent stake in Adani Green Energy. The shares were purchased at an average price of Rs 920 apiece, taking the transaction value to Rs 3,920 crore.
After the transaction, Infinite Trade and Investment’s shareholding reduced to 0.57 per cent from a 3.37 per cent stake in Adani Green Energy earlier.
Promoter companies of the Adani Group have been selling significant stakes in group companies to pay down share-backed financing. Previously, GQG Partners had also bought stakes in the companies at various times, some of them from promoters.
GQG had raised its stake in Adani Green from 3.50 per cent to 6.32 per cent for Rs 9,600 crore ($1.17 billion) at the time.
Adani Green Energy has an operation portfolio of 20.4 GW. The company had reported a consolidated profit of Rs 323 crore, up 51 per cent for the April-June quarter from Rs 214 crore during the corresponding quarter in fiscal 2022. Total income surged 41 per cent to Rs 2,404 crore. AGEL aims to grow its renewable capacity to 45 GW by 2030 through solar, wind, and solar-wind hybrid solutions as major contributors.