Adani Green Energy Shares Plunge 11% Following Total Energies’ Announcement

• On Monday, Adani Green’s stock dropped 11.36%.
• TotalEnergies put a hold on additional Adani Group investments.
• Adani Green is 19.75% owned by TotalEnergies.

Adani Green Energy Ltd (AGEL) shares witnessed a sharp and sudden decline of 11.36% on Monday, plunging to a day’s low of ₹932.90 during late trading hours. The steep fall in share price came in response to a significant announcement by France-based TotalEnergies, one of the world’s leading energy companies and a key strategic partner of the Adani Group. TotalEnergies stated that it would pause any new financial investments in Adani Group companies amidst ongoing allegations of corporate governance issues and irregularities involving senior executives within the conglomerate.

The decision by TotalEnergies, which holds a substantial stake in the Adani Group’s renewable energy business, has raised fresh concerns about investor confidence in the group’s operations and governance. This announcement adds to the challenges already faced by the Adani Group following months of scrutiny over its practices and financial dealings. The news spurred heavy selling pressure on AGEL shares, reflecting broader fears about the potential long-term impact on the group’s expansion plans and its ability to attract global investment.

Why Did Adani Green Energy Shares Drop?

The sharp fall in Adani Green Energy Ltd (AGEL) shares was triggered by an announcement from TotalEnergies, which holds a 19.75% minority stake in AGEL. The French energy giant stated that it would pause any new investments in the Adani Group until allegations against certain executives are addressed. These allegations, outlined in a U.S. federal indictment, accuse Gautam Adani, the chairman of the Adani Group, and his nephew Sagar Adani of involvement in a corruption scheme.

In its public statement, TotalEnergies clarified that the allegations do not directly implicate AGEL or its subsidiaries. However, the company emphasized its zero-tolerance policy on corruption. It reiterated its commitment to safeguarding its interests as a minority shareholder and joint-venture partner in various Adani renewable energy projects. This cautious stance by TotalEnergies has raised concerns among investors, contributing to the steep decline in AGEL’s share price.

“Until the accusations against the Adani Group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the companies,” the company said.

TotalEnergies’ Involvement with Adani Group

TotalEnergies has played a crucial role as an international partner in Adani Group’s renewable energy projects. The French energy giant holds a 19.75% stake in Adani Green Energy Ltd (AGEL) and has invested in several joint ventures. These include AGEL23 (2020), AREL9 (2023), and AREL64 (2024), all of which focus on expanding renewable energy assets in India.

However, TotalEnergies disclosed that it was unaware of any ongoing investigation into the alleged corruption scheme involving some Adani executives until the U.S. authorities publicly announced the charges. The company clarified that the allegations are limited to specific individuals and do not directly involve AGEL or its subsidiaries. Despite this, TotalEnergies’ statement emphasized its commitment to transparency and ethical conduct, reinforcing its zero-tolerance policy on corruption.

In the wake of the announcement, AGEL’s stock saw significant trading activity, with approximately 12.80 lakh shares changing hands on the Bombay Stock Exchange (BSE), well above its two-week average of 4.07 lakh shares. The stock closed 9.67% lower at ₹950.60, reflecting a sharp 36.61% decline over the past five trading days. The turnover for the day was ₹132.46 crore, with the company’s market capitalization now standing at ₹1,51,591.91 crore. The sharp fall in share price highlights the market’s sensitivity to developments surrounding the Adani Group’s governance and ongoing legal challenges.

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