Total Energies Will Sell A Small Stake In Adani Green

To capitalize on the increase in the value of the Indian renewable energy producer, the French energy giant TotalEnergies SE announced it intends to sell a small portion of its 20% share in Adani Green Energy.

For $2 billion, the business acquired a 20% share in Adani Green in 2021. At the end of August, TotalEnergies' ownership stake in the business was valued around $10 billion. Patrick Pouyanne, the chief executive officer of TotalEnergies, reportedly stated that the increase in value represents “a source of potential cash”. in response to a query during an investor presentation on Wednesday.

In an interview in New York, Pouyanne stated that his business does not currently have any plans to reduce its share, and if it did, any reduction would be minimal and would only serve to partially return its initial investment. In the interview, he stated, “We are committed to Adani Green,”. In comparison to the benchmark S&P BSE Sensex Index's 1.8% fall, Adani Green's shares have increased 54% this year.

Nevertheless, Adani Green has lost 15% of its value so far this month due to worries that it is carrying too much debt while growing its companies. In June, TotalEnergies announced plans to invest billions of dollars in India's development of green hydrogen. As part of those plans, the company agreed to purchase a 25% stake in Adani New Industries for an undisclosed sum.

Adani Enterprises, the main company of the coal-to-ports conglomerate under the leadership of the Indian tycoon, is the owner of Adani New Industries.

The richest man in Asia, Gautam Adani, has committed to investing roughly $70 billion by 2030 in the whole green energy supply chain. By the end of this decade, his group wants to be the largest producer of renewable energy on the planet.