Qatar’s sovereign wealth fund Qatar Investment Authority (QIA) has picked up more than 2.5 per cent stake in Adani Green Energy Ltd (AGEL) for around USD 500 million, according to industry sources.
This is the second investment by the ESG-focused (environmental, social and governance) fund in an Adani Group company after Adani Electricity Mumbai Ltd (AEML). In 2020, QIA acquired a 25.1 per cent stake in AEML, a subsidiary of Adani Energy Solutions Ltd which owns the electricity distribution business in Mumbai, India. According to exchange data, Infinite Trade and Investment, a promoter group entity of Adani Green Energy, divested a 2.8 per cent stake in the company for Rs 4,131 crore through an open market transaction on Monday.
The promoter entity sold 4,48,82,500 shares, amounting to a 2.8 per cent stake, at a price of Rs 920.43 per share, taking the deal size to around Rs 4,131 crore. The market data showed that INQ Holding LLC, a wholly-owned subsidiary of Qatar Investment Authority, bought 4.26 crore shares, amounting to a 2.68 per cent stake in Adani Green Energy. The shares were bought at an average price of Rs 920 per piece, taking the transaction value to Rs 3,920 crore. Post 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. Promoters and promoter group held a 56.27 per cent stake in the company at the end of the June quarter.
Shares of Adani Green Energy tanked up to 13 per cent intra-day on Monday before closing at Rs 965.05, still down by 4.69 per cent, on BSE. Industry sources said that Qatar Investment Authority (QIA) is one of the largest sovereign funds in the world. “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.”
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