Adani Green Energy hits new high; zooms 120% in two months

Shares of Adani Green Energy (AGEL) hit a new high of Rs 115, up 7 per cent on the BSE on Monday on back of heavy volumes. The stock had rallied 10 per cent on Friday.

The counter has seen huge trading volumes with a combined 2.45 million shares changing hands on the NSE and BSE in the first half-an-hour of trading. In the past two months, the stock has zoomed 120 per cent, as against a 5 per cent rally in the benchmark S&P BSE Sensex. At 10:35 AM, the stock was trading 6.4 per cent higher at Rs 113.5 apiece, as against a 0.58 per cent rise in the benchmark index.

AGEL, is a subsidiary of the Adani Group and is one of the largest renewable power generation companies in India. The company plans to commission a total of around 800 MW of new capacity of wind and solar projects in FY2020. The Group has won bids for 130 MW wind and 600 MW Hybrid in Q1FY20. Post completion of all the newly bagged projects and the ones under implementation, the Group’s operational capacity would be 5,290 MW, the management said while announcing September quarter results on August 7, 2019.

Apart from the ongoing Greenfield projects, AGEL has also signed a securities purchase agreement for acquisition of 205MW operating solar assets of Essel Green Energy Private and Essel Infraprojects. The total acquisition cost is Rs 1,300 crore with a debt of Rs 940 crore, which AGEL would refinance.

Earlier this month, rating agency India Ratings and Research (Ind-Ra) had affirmed AGEL’s long-term issuer rating at ‘IND A’ with a stable outlook.

"Higher-than-expected operational performance of the specil purpose vehicles (SPVs), availability of strong liquidity buffers leading to consolidated interest coverage ratio above 2.0 times on a sustained basis, and reduction in ratio of under construction assets to operational assets would be positive for the ratings," Ind-Ra said in rating rational.

On November 4, Adani Green said that Vistra had released 215 million equity shares of the company in capacity as a security trustee for term loan facility availed by the company.