Adani Green’s projects: People familiar with the situation said that TotalEnergies SE is in discussions to invest in renewable energy projects created by Adani Green Energy Ltd. This could be the first public transaction between the French oil giant and Gautam Adani since a short-seller accused the Indian billionaire’s business empire of fraud.
According to the persons who asked to remain anonymous since the talks are confidential, Total is looking to purchase interests in a few of Adani Green’s projects as part of its effort to increase the number of sustainable energy projects in its portfolio. Approximately $700 million might be invested into the projects by the French group overall, according to one of the persons.
The agreement will provide Adani Green with more resources to create new renewable energy projects while expanding Total’s footprint in the rapidly expanding Indian energy sector. Additionally, according to statistics collated by Bloomberg, Total would strengthen its relations with Adani Green, of which it is now the second largest stakeholder with a 19.75% interest.
As the French corporation aims to increase its clean energy output, Total has regularly worked with Adani in an effort to appease shareholders who have been calling for stronger steps to combat climate change. This objective fits in with India’s plans to reduce its dependency on coal and oil and become a net-zero-carbon country by 2070.
A 37.4% interest in Adani Gas Ltd., currently known as Adani Total Gas, was purchased by Total for $600 million in 2019. It made one of the largest foreign investments in India in 2021 when it paid $2.5 billion to acquire a 20% ownership in Adani Green as well as a 50% interest in some of the solar projects that Adani Green was operating at the time.
When its value reached $10 billion in 2022, the year Chief Executive Officer Patrick Pouyanne described the share as “a source of potential cash,” Total’s investment in Adani Green paid off handsomely. The two were attempting to work together to finance green hydrogen development projects in India that would have cost billions of dollars.
However, Total shelved a plan to construct $5 billion worth of green hydrogen projects with Adani Enterprises Ltd. after Hindenburg Research accused the Adani Group of “brazen” financial fraud and market manipulation earlier this year. The claims made by the short seller were categorically refuted by the Adani Group.
Since the publication of the short-seller report, Adani’s stocks and bonds have recovered some of their losses, especially when the company got funding from GQG Partners. In addition, a panel established by the Indian Supreme Court in May declared there was no proof of stock-price manipulation in its interim assessment. In the three months ending in March, the tycoon’s business incubator, Adani Enterprises, declared that its profit had risen to 7.22 billion rupees ($87 million).
In order to finance expansion, Adani Green stated in July that it intended to sell shares to institutional investors in order to raise 123 billion rupees.
