Qatar Investment Authority picks stake worth $500 million in Adani Green 

Qatar Investment Authority (QIA) has recently made a significant investment in Adani Green Energy Ltd (AGEL), acquiring over 2.5 per cent stake in the company for approximately $500 million, news agency Press Trust of India reported citing reliable industry sources. This marks QIA's second investment in an Adani Group company, following its purchase of a 25.1 per cent stake in Adani Electricity Mumbai Ltd (AEML) back in 2020.

Exchange data reveals that Infinite Trade and Investment, a promoter group entity of Adani Green Energy, divested a 2.8 per cent stake in the company for Rs 4,131 crore through an open market transaction. In the same deal, INQ Holding LLC, a wholly-owned subsidiary of QIA, purchased 2.68 per cent stake in Adani Green Energy, acquiring 4.26 crore shares at an average price of Rs 920 per share, amounting to a transaction value of Rs 3,920 crore.

Following the transaction, Infinite Trade and Investment's shareholding in Adani Green Energy was reduced to 0.57 per cent from the previous 3.37 per cent stake. The promoters and promoter group's combined shareholding stood at 56.27 per cent at the end of the June quarter.

Adani Green Energy share slump

The news of QIA's investment initially impacted Adani Green Energy's share price, which experienced a decline of up to 13 per cent during intra-day trading, ultimately closing at Rs 965.05 on the BSE with a 4.69 per cent drop.

AGEL, with an operational portfolio of 8.3 GW renewable energy capacity and a locked-in portfolio of 20.4 GW, has ambitious plans to expand further. The company aims to reach a capacity of 45 GW by FY30. Adani Group Chairman Gautam Adani recently reaffirmed the company's commitment to producing cost-effective energy and achieving its 45 GW renewable energy capacity target, which would represent over 10 per cent of India's total renewable energy market share.

Qatar Investment Authority is recognised as one of the world's largest sovereign funds, and its investment in AGEL solidifies its interest in environmentally sustainable projects. The move aligns with the fund's ESG-focused approach, which emphasises investments in companies with strong environmental, social, and governance practices.

The investment from QIA is expected to boost AGEL's expansion plans and contribute to the growth of India's renewable energy sector.

(With PTI inputs)