Shares of a green energy company gained 5 percent on Tuesday’s intraday trades and crossed the ₹ 1,000 mark to reach an intraday high of ₹ 1014.80 apiece on the National Stock Exchange (NSE) after Qatar Investment Authority picked a stake in it. Its shares settled at ₹ 991.00 apiece.
According to data available on the exchanges, INQ Holdings LLC, a wholly-owned subsidiary of Qatar Investment Authority (QIA), has acquired nearly a 2.7 per cent stake in Adani Green Energy for ₹ 3,920 crore from promoter entity Infinite Trade and Investment. It bought more than 4.26 crore shares at ₹ 920.00 each.
On the other hand, Infinite Trade and Investment sold 4.48 crore shares at a weighted average price of ₹ 920.43, taking the transaction value to ₹ 4131 crores. The other buyers were not known immediately.
This is the second investment that Qatar has made in an Adani group company. Earlier, in 2020, it had acquired a 25.1 percent stake in Adani Electricity Mumbai, a subsidiary of Adani Energy Solutions, for ₹ 3,220 crores.
Reports suggested in May 2023 that Adani Green is in talks with global fund managers to raise $ 500 to $ 750 million as it is reviving its capex plans after the Hindenburg setback in January.
Adani group’s promoters have been monetizing stakes in several firms over the past three months. GQG Partners, a US-based boutique asset management firm purchased around $ 3 billion worth of shares from the company’s promoters earlier.
The company recently reported its result for the first quarter. It witnessed a 50.93 percent year on year jump in its net profit at ₹ 323 crore, compared with ₹ 214 crores in the same quarter last year. Its revenue from operations jumped 55.04 percent to ₹ 2059 crores for the quarter against ₹ 1,328 crores in the corresponding quarter a year ago.
Adani Green Energy is a holding company of several subsidiaries carrying business of renewable power generation within the group and is primarily involved in renewable power generation and other ancillary activities.
With a market capitalization of ₹ 1,53,002 crores, Adani Green is a large-cap company. It has an ideal return on equity of 19.62 percent but a very high debt-to-equity ratio of 7.42. Its shares were trading at a price-to-earnings ratio of 145.03 which is much higher than the industry P/E of 16.04, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold a 56.21 percent stake in the company, followed by retail investors with 24.01 percent, foreign institutions with 18.25 percent, domestic institutions with 1.36 percent and mutual funds with 0.11 percent
Written by Simran Bafna
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
