Total Energies to sell small stake in Adani Green

NEW DELHI: French energy giant Total Energies SE said it is planning to sell a small portion of its 20% stake that it holds in Adani Green Energy to cash in on the jump in the valuation of the Indian renewable energy producer. 

The company bought 20% stake in Adani Green in 2021 for $2 billion. TotalEnergies’ stake at the company was worth nearly $10 billion at the end of August. According to the reports, Patrick Pouyanne, the chief executive officer of TotalEnergies, said in response to a question during an investor presentation on Wednesday that the appreciation in value is “a source of potential cash”.

In an interview in New York, Pouyanne said his company has no plan right now to cut its holding, and if it did so, any reduction would be small and only to recoup some of its initial investment. “We are committed to Adani Green,” he said in the interview.  Adani Green’s shares are up 54% this year, compared to a 1.8% decline in the benchmark S&P BSE Sensex Index.

Still, Adani Green is down 15% so far this month amid concerns that it’s sitting on too much debt as it expands its businesses. In June, TotalEnergies agreed to buy a 25% stake in Adani New Industries for an undisclosed sum, part of a plan to invest billions of dollars in green hydrogen development in India. Adani New Industries is owned by Adani Enterprises, the flagship firm of the coal-to-ports conglomerate controlled by the Indian magnate. 

Gautam Adani, Asia’s richest man, has pledged to invest about $70 billion in the entire green energy supply chain by 2030. His group aims to become the world’s biggest renewable power producer by the end of this decade.

TotalEnergies’ stake worth nearly $10 billion
TotalEnergies’ bought 20% stake in Adani Green in 2021 for $2 billion. The stake was worth nearly $10 billion at the end of August