The French energy major TotalEnergies is reportedly preparing to sell up to 6% of its stake in Indian renewables powerhouse Adani Green Energy Ltd (AGEL). The stake sale is estimated to fetch around ₹10,200 crore (approximately US$1.14 billion) at current valuations. This move marks a significant development in both companies’ strategies and the Indian renewables sector.
What’s happening: TotalEnergies to sell 6% stake in Adani Green
- Sources report that TotalEnergies is considering an exit of up to 6% of its shareholding in AGEL.
- At AGEL’s current market capitalisation of around ₹1.69 lakh crore, a 6% stake translates to ~₹10,200 crore.
- TotalEnergies originally invested roughly US$2.5 billion in AGEL in January 2021, acquiring about 19.75% of the company.
- The sale is seen as part of TotalEnergies’ broader strategy to reduce debt and realign its renewable-assets portfolio
Why this matters
1. Strong profit realisation
TotalEnergies’ initial investment in AGEL has dramatically appreciated. The reported sale would allow the company to lock in gains while market valuations for Indian renewables remain elevated.
2. Impact on AGEL and Indian renewable sector
Such a large-scale stake sale by a major investor can have ripple effects on AGEL’s share price, investor sentiment and financing profile. It also signals how global players view the Indian renewables opportunity.
3. Ownership and governance implications
With TotalEnergies holding about ~19% currently (≈15.58% + 3.41% via subsidiaries) in AGEL, a 6% reduction would meaningfully change its ownership share and possibly its role in governance.
4. Strategic shift for TotalEnergies
The move underscores how even strong growth assets are being used by energy majors to manage capital, reduce debt and balance global exposure — hinting at a more cautious investment climate in green energy globally.
Background: The partnership between TotalEnergies and Adani Green
- AGEL, founded in 2015, has grown into one of India’s largest renewable-energy developers, targeting 50 GW of capacity by 2030.
- TotalEnergies entered into the relationship via a ~US$2.5 billion investment in January 2021, gaining exposure to India’s solar and wind energy market through AGEL.
- The partnership was part of a broader global strategy by TotalEnergies to expand renewables beyond traditional oil & gas operations, especially in high-growth markets like India.
Implications & what to watch
- Share price and market reaction: AGEL’s shares responded with modest decline on the news; monitoring how much the stock is affected will be important. Moneycontrol
- Deal structure: Will TotalEnergies sell to the open market, to AGEL itself (buy-back) or via block transaction? The mode of exit will influence impact.
- Regulatory and sector dynamics: Large stake changes in major renewable firms may prompt regulatory scrutiny or investor re-assessment, especially for foreign participants in Indian energy.
- Renewables financing: The move might reflect how global renewables investors are juggling capital deployment and risk — could influence funding flow into Indian projects.
- AGEL’s growth outlook: While the sale reflects profit taking, AGEL’s growth pipeline (~16.6 GW operational currently) remains intact.
Final thoughts
The reported plan by TotalEnergies to sell a 6% stake in Adani Green Energy for ₹10,200 crore marks a pivotal moment in India’s renewable energy investment story. It reflects a successful investment exit for a global major while also signalling shifts in ownership dynamics and capital flows. For investors, policymakers and sector stakeholders, the development is a reminder that while growth is strong, strategic moves and portfolio rebalancing are ongoing in the clean‐energy space.
