Adani Group shares in demand; Adani Power, Energy Solutions surge up to 12%

According to reports, Abu Dhabi National Energy PJSC (TAQA) is looking to double down in India and evaluating a large exposure in the expansive power businesses of Gautam Adani.

Shares of Gautam Adani group companies were in focus and rallied up to 12 per cent backed by heavy volumes on the BSE in Friday’s intra-day trade in an otherwise weak market.

Adani Power (up 12 per cent at Rs 321), Adani Green Energy (10 per cent at Rs 1,025), Adani Energy Solutions (9 per cent at Rs 894.35) and Adani Enterprises (Rs 2,665), Adani Wilmar (Rs 393.55) and Adani Total Gas (Rs 676.70) were up 7 per cent on the BSE in intra-day trade. Adani Ports, ACC, Ambuja Cements and New Delhi Television were up in the range of 2 per cent to 5 per cent. In comparison, the S&P BSE Sensex was down 0.35 per cent at 64,922 at 12:13 PM.

According to reports, Abu Dhabi National Energy Co. PJSC (TAQA) is looking to double down in India and is evaluating a large exposure in the expansive power businesses of Gautam Adani that span thermal generation to transmission, clean energy and green hydrogen.

TAQA is keen to deploy $1.5-2.5 billion in Adani Group firms or in a single entity, said the sources mentioned above. However, both sides believe there is maximum synergy between TAQA and Adani Energy Solutions, formerly Adani Transmission, to forge a strategic alliance and work together on projects in North Africa and West Asia, newspaper Economic Times reported on Friday.

Among individual stocks, Adani Power soared 12 per cent to Rs 321 in intra-day trade today. The stock of Adani Group integrated power utilities company was quoting at its highest level since January 2023. In past two days, the counter has rallied 15 per cent after Australia-listed investment firm, GQG Partners, invested $1.1 billion (Rs 9,000 crore) in Adani Power on acquiring 8.1 per cent stake from the Adani family via multiple block deals.

Adani Power has installed capacity of 12,450 MW (which includes 40 MW solar power project) at multiple locations i.e. Bitta, Mundra, Kawai, Tiroda, Udupi, Raipur, Raigarh. The company sells power under long term Power Purchase Agreement (PPAs), medium term PPAs, short term PPAs, on merchant basis and also engaged in trading, investment and other business activities.

The company, together with its subsidiaries currently has multiple power projects located at various locations with a combined installed and commissioned capacity of 14,450 MW and another 800 MW under commissioning as of year end. The Company, together with its subsidiaries sells power generated from these projects under a combination of long term Power Purchase Agreements (PPA), medium term PPAs, short term PPAs and on merchant basis, Adani Power said in its FY23 annual report.

Demand for electricity in India is expected to grow at a sustained pace given the government’s massive push towards ‘Make-In-India’, PLI (Production Linked Incentive) Scheme, increasing industrialization, improving incomes and standards of living, and push for increasing the penetration of electric vehicles in the transportation sector, among others, Adani Power said.

Meanwhile, Adani Enterprises on Thursday after market hours announced that Mundra Solar Energy Limited (MSEL), a step down subsidiary of the company has received the commercial operational date (COD) certificate from Solar Energy Corporation of India for Solar PV Cells and Solar PV Modules manufacturing plant located at Mundra in the State of Gujarat. The plant has a capacity of 2.0 GW per annum. Adani Enterprises holds 74 per cent shares of MSEL through its wholly-owned subsidiary i.e. Adani Tradecom Limited.