TotalEnergies plans to sell up to 6% stake in Adani Green Energy: report
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TotalEnergies is preparing to divest up to a 6% stake in Adani Green Energy Ltd (AGEL), reported The Economic Times, citing people familiar with the matter.
The move marks a significant development in the long-standing partnership between the French energy major and the Adani Group’s renewable arm.
TotalEnergies currently holds nearly 19% in AGEL through two subsidiaries: 15.58% via TotalEnergies Renewables Indian Ocean Ltd and 3.41% through TotalEnergies Solar Wind Indian Ocean Ltd.
The proposed partial exit would reduce the company’s exposure while allowing it to capture gains from a substantial rise in valuation since its initial investment.
Stake sale could fetch over Rs 10,000 crore
TotalEnergies first acquired a 20% minority stake in AGEL in January 2021 for around $2.5 billion.
Since then, Adani Green’s market value has surged significantly, with TotalEnergies’ shareholding now estimated to be worth nearly $8 billion.
According to an industry executive mentioned in the report, the company now intends to realize some of those gains.
“They now intend to take some profit off the table,” the person said. The stake may be offered to Adani Green Energy itself, which is expected to evaluate the proposal.
Based on AGEL’s current market capitalisation of Rs 1.69 lakh crore, TotalEnergies’ planned sale of a 6% stake could fetch around Rs 10,200 crore (approximately $1.14 billion).
The potential transaction comes months after TotalEnergies CEO Patrick Pouyanné signaled the company’s willingness to trim exposure.
In September, he told investors that although AGEL remained a strong and expanding business, the group did not plan to deepen the partnership.
“I would be very happy to sell my stake in Adani Green,” he said at the time.
Growing portfolio and expanding renewable footprint
Founded in 2015, Adani Green Energy has rapidly grown into one of India’s largest renewable energy developers.
The company’s operational capacity exceeds 16.6 gigawatts, and it aims to expand that figure to 50 GW by 2030.
One of its most ambitious projects is the world’s largest renewable energy plant at Khavda, Gujarat, spanning 538 square kilometers, five times the size of Paris.
Last year, TotalEnergies and AGEL deepened their collaboration through a joint venture managing a 1,150 MW solar portfolio.
TotalEnergies committed $444 million to accelerate project development.
The companies also maintain a long-running partnership in India’s gas sector, jointly holding 37.4% each in a city gas distribution and LNG infrastructure platform.
Their investments include stakes in LNG terminals at Dhamra and potentially Mundra, with public shareholders owning the remaining 25.2%.
Debt reduction efforts influence divestment strategy
The planned AGEL stake sale aligns with TotalEnergies’ broader strategy to strengthen its balance sheet.
The company is reportedly exploring sales of renewable assets across Asia as part of its debt-reduction efforts.
Last month, it announced plans to cut annual capital spending by $1 billion, targeting a reduced range of $15–17 billion per year between 2027 and 2030.
The move forms part of a wider initiative to save $7.5 billion.
As TotalEnergies reassesses its renewable energy portfolio, the potential divestment from AGEL reflects both an opportunity to lock in gains and a shift toward disciplined capital allocation.
The post TotalEnergies plans to sell up to 6% stake in Adani Green Energy: report appeared first on Invezz
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TotalEnergies plans to sell up to 6% stake in Adani Green Energy: report
Share:
TotalEnergies is preparing to divest up to a 6% stake in Adani Green Energy Ltd (AGEL), reported The Economic Times, citing people familiar with the matter.
The move marks a significant development in the long-standing partnership between the French energy major and the Adani Group’s renewable arm.
TotalEnergies currently holds nearly 19% in AGEL through two subsidiaries: 15.58% via TotalEnergies Renewables Indian Ocean Ltd and 3.41% through TotalEnergies Solar Wind Indian Ocean Ltd.
The proposed partial exit would reduce the company’s exposure while allowing it to capture gains from a substantial rise in valuation since its initial investment.
Stake sale could fetch over Rs 10,000 crore
TotalEnergies first acquired a 20% minority stake in AGEL in January 2021 for around $2.5 billion.
Since then, Adani Green’s market value has surged significantly, with TotalEnergies’ shareholding now estimated to be worth nearly $8 billion.
According to an industry executive mentioned in the report, the company now intends to realize some of those gains.
“They now intend to take some profit off the table,” the person said. The stake may be offered to Adani Green Energy itself, which is expected to evaluate the proposal.
Based on AGEL’s current market capitalisation of Rs 1.69 lakh crore, TotalEnergies’ planned sale of a 6% stake could fetch around Rs 10,200 crore (approximately $1.14 billion).
The potential transaction comes months after TotalEnergies CEO Patrick Pouyanné signaled the company’s willingness to trim exposure.
In September, he told investors that although AGEL remained a strong and expanding business, the group did not plan to deepen the partnership.
“I would be very happy to sell my stake in Adani Green,” he said at the time.
Growing portfolio and expanding renewable footprint
Founded in 2015, Adani Green Energy has rapidly grown into one of India’s largest renewable energy developers.
The company’s operational capacity exceeds 16.6 gigawatts, and it aims to expand that figure to 50 GW by 2030.
One of its most ambitious projects is the world’s largest renewable energy plant at Khavda, Gujarat, spanning 538 square kilometers, five times the size of Paris.
Last year, TotalEnergies and AGEL deepened their collaboration through a joint venture managing a 1,150 MW solar portfolio.
TotalEnergies committed $444 million to accelerate project development.
The companies also maintain a long-running partnership in India’s gas sector, jointly holding 37.4% each in a city gas distribution and LNG infrastructure platform.
Their investments include stakes in LNG terminals at Dhamra and potentially Mundra, with public shareholders owning the remaining 25.2%.
Debt reduction efforts influence divestment strategy
The planned AGEL stake sale aligns with TotalEnergies’ broader strategy to strengthen its balance sheet.
The company is reportedly exploring sales of renewable assets across Asia as part of its debt-reduction efforts.
Last month, it announced plans to cut annual capital spending by $1 billion, targeting a reduced range of $15–17 billion per year between 2027 and 2030.
The move forms part of a wider initiative to save $7.5 billion.
As TotalEnergies reassesses its renewable energy portfolio, the potential divestment from AGEL reflects both an opportunity to lock in gains and a shift toward disciplined capital allocation.
The post TotalEnergies plans to sell up to 6% stake in Adani Green Energy: report appeared first on Invezz
Read More
Evening digest: Eli Lilly hits $1T, crypto stumbles, China-Japan tensions flare