TotalEnergies likely to sell 6% stake in Adani Green for ₹10,200 crore

French energy giant TotalEnergies is reportedly planning to sell up to a 6 per cent stake in Adani Green Energy (AGEL), a deal estimated to be worth nearly ₹10,200 crore, according to The Economic Times.

 

The French company had acquired a 19.75 per cent stake in AGEL in January 2021 for around $2.5 billion as part of its strategy to strengthen its renewable energy footprint in India by gaining direct access to an expanding portfolio of clean energy assets.

Stake value jumps to $8 billion

According to the report, TotalEnergies' stake in Adani Green is currently valued at close to $8 billion. The report, citing sources, claimed that the company is looking to monetise part of its holding to lock in gains.  

 

Based on AGEL's market capitalisation of ₹1.69 trillion, a 6 per cent stake sale could fetch around ₹10,200 crore (approximately $1.14 billion). 

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TotalEnergies' CEO signalled possibility of a sale

In September, TotalEnergies CEO Patrick Pouyanne had hinted at a potential stake sale, stating that the company could consider selling a portion of its shares to capitalise on the rise in AGEL’s valuation. According to Bloomberg, Pouyanne said, "If I were able to sell a quarter of my shares to recoup my $2 billion and to be neutral, I would be very happy."

 

Established in 2015, Adani Green has become one of India’s biggest renewable power companies. It currently operates more than 16.6 GW of green energy capacity and plans to scale this to 50 GW by 2030.

TotalEnergies focusing on debt reduction

The company is also weighing the sale of other renewable assets in Asia as part of a broader strategy to bring down its debt. According to Reuters, TotalEnergies recently announced plans to trim annual capital expenditure by $1 billion, bringing it down to $15-17 billion a year between 2027 and 2030, as part of a $7.5 billion cost-saving move.  ALSO READ | Adani sells 13% AWL Agri stake to Wilmar unit as part of major divestment

A longstanding partnership

Adani Green is currently constructing the world’s largest renewable energy park in Khavda, Gujarat. In September last year, TotalEnergies and AGEL created a new joint venture to manage a 1,150 MW solar project portfolio, backed by a $444 million investment from the French energy group.

 

The two companies have also collaborated in the natural gas sector since 2018, jointly holding 37.4 per cent each in a venture with interests in city gas distribution, LNG terminal operations, and gas marketing.

 

In November last year, TotalEnergies announced that it would pause new investments in Adani Green, citing corruption allegations by the US Securities and Exchange Commission (SEC). The move followed bribery charges filed in a New York district court against the conglomerate's Founder and Chairman Gautam Adani and seven others in connection with projects under AGEL.

 

However, in June this year, Pouyanne said TotalEnergies will continue helping Adani Green expand its renewable capacity. After a meeting with Commerce and Industry Minister Piyush Goyal, Pouyanne said, "On the renewable side, we continue to support the expansion of Adani Green, which already has 14 gigawatts of capacity. So, we will continue to support this growth."