Qatar fund buys 2.7% stake in Adani Green for $500 mn via block deals



The Qatar Investment Authority, a West Asia-based sovereign investment fund, has acquired a 2.7 per cent stake in Adani Green Energy for $500 million. This acquisition took place on Monday through block deals. According to banking sources, the group plans to utilise the proceeds from this transaction to reduce its debt and fund other general corporate activities.


The investment by the Qatar sovereign fund signifies a strong endoRs.ement for Adani Green Energy, which currently boasts an operational capacity of 8,316 MW. This is the largest operating renewable energy portfolio in the country.


Shares in Adani Green Energy (AGEL) closed 4.69 per cent lower at Rs. 965 per share, bringing the company’s total valuation to Rs. 1.53 trillion. Before the transaction, the promoteRs. held a 56.27 per cent stake in the company, which they have diluted by 2.7 per cent today.


This investment comes hot on the heels of reports that the same fund is considering the acquisition of a one per cent stake in Reliance Retail Venture. This potential investment, valued at $1 billion, would result in a total valuation of $100 billion for the Reliance group company.


The Adani group has set an ambitious goal to invest $70 billion in the renewable energy sector by 2030. This sector is already witnessing significant investment from sovereign funds globally. The company’s hybrid portfolio, comprising solar and wind, currently stands at 2,140 MW and is backed by technologically advanced solar modules (including bifacial modules and horizontal single-axis trackeRs.), wind turbines, a highly available plant and grid, and enhanced solar irradiation. The company has plans to escalate its renewable energy capacity to 45 Gigawatts (GW) over the next seven yeaRs., up from the current 8.3 GW.


A source revealed that AGEL had a net debt of Rs. 40,000 crore as of March this year. The company can generate substantial cash via internal accruals to invest in new projects and reduce debt. The company is also planning a Qualified Institutional Placement (QIP) that will facilitate funding for ongoing projects. For these projects, it has already acquired 200,000 acres of land and anticipates commissioning another 3 GW of projects in the financial year 2024, with identified land in Gujarat and Rajasthan.


AGEL has already attracted investments from sovereign wealth funds, both at the holding-company level and for specific projects. “Investments in green energy are on the rise for sovereign funds worldwide, and they would be interested in investing in the company when the share sale is launched,” an investment banking source mentioned.


The company has recently declared to stock exchanges that it possesses $1.64 billion of construction facilities to guarantee fully funded growth. It also has diveRs.ified sources of funding with extended maturities of up to 20 yeaRs..


Why is QIA betting on AGEL?


  • AGEL targets 45 GW capacity by 2030

  • Operational Capacity increases by 43% to 8,316 MW YoY as of July end

  • Solar portfolio capacity utilisation at 26.9% 

  • Wind portfolio capacity utilisation at 38.7% 

  • Overall Hybrid portfolio capacity utilisation stands at a strong 47.2% 

  • Sale of Energy increases by 70% YoY at 6,023 mn units in Q1 FY24 vs. 3,550 mn units in Q1 FY23 



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QIA likely picked up shares worth $500 million in Adani Green: Report



BENGALURU (Reuters) – Qatar Investment Authority (QIA) likely picked up shares worth $500 million in India’s Adani Green Energy via block deals on Monday, ET Now reported, citing sources.


Over 1.1 million shares of the Adani Group-owned renewable power producer changed hands in fourteen block deals as of 2 p.m. IST, as per data from Refinitiv, in a price range of 882 to 954 rupees per share.


QIA’s potential investment in the billionaire Gautam Adani-owned firm comes at a time when the group is coming out of the impact caused after U.S.-based Hindenburg Research said it held short positions in the conglomerate in January.


The short seller’s report battered investor confidence and wiped out nearly $147 billion from Adani companies’ market value.


Shares of its group companies have rebounded but are still down around $100 billion in value.


QIA and Adani Green did not immediately respond to Reuters’ request for comment.


Shares of Adani Green fell as much as 12.59% earlier on Monday, but have trimmed most of their losses. The stock was trading down 3.3%, as of 2:30 p.m IST.


 


(Reporting by Biplob Kumar Das and Nallur Sethuraman in Bengaluru; Editing by Varun H K and Sonia Cheema)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Aug 07 2023 | 4:05 PM IST



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Adani Energy Solutions secures $1 bn financing for green HVDC link project



Adani Energy Solutions Limited (AESL) on Monday said it has achieved financial closure for its $ 1 billion green high voltage direct current (HVDC) link project, that will increase renewable energy supply to Mumbai.


The 80-km multi-faceted project will offer a technological upgradation to the Mumbai city. The construction work for this link will begin in October 2023, AESL (erstwhile Adani Transmission Ltd) said in a statement.


“AESL has announced successful financial closure for its $ 1 billion Green HVDC link project, which will enable further ‘greening’ of the Mumbai Grid by supplying more renewable power to the city while supporting its rising electricity demand,” it said.


HVDC transmission technology is superior to other conventional technologies as it stabilizes power distribution networks, where sudden new loads or blackouts in one part of the network may lead to synchronization problems and cascading failures.


Besides, it is the only technology suitable for islands where submarine cables are used for procuring power supply and results in lower energy losses.


The link shall bulk inject an additional 1,000 MW of renewable power into the city, thus ensuring uninterrupted power supply in future. Adani Electricity Mumbai Ltd (AEML), being the largest electricity distribution company, has committed to increasing the share of renewable energy in the overall mix to 60 per cent by 2027.


“This link is the need of the hour for the city and will support its growth aspirations. It showcases our commitment to offering Mumbai a brighter and greener future.


“The project will help accelerate the city’s decarbonization and its net zero journey. We would like to express our sincere appreciation to our banking partners for their continued support in completing the transaction smoothly and for their enduring faith and confidence in AESL,” said Anil Sardana, MD, AESL.


The credit facility is part of the $ 700 million revolving project finance facility tied up in October 2021 for its under-construction transmission assets portfolio.


This platform Infrastructure Financing Framework (IFF) that funds various under-construction assets offers project access to funds that another project in the portfolio has paid back.


“The banking consortium for the platform infrastructure financing framework comprised nine international banks including DBS Bank Ltd, Intesa Sanpaolo S.p.A., Mizuho Bank Ltd., MUFG Bank Ltd., Siemens Bank GmbH, Socit Gnrale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and The Hong Kong Mortgage Corporation Limited,” the company said.


Mumbai’s electricity demand is expected to touch 5,000 MW by FY25, from the current peak demand of 4,000 MW. The island city has only 1,800 MW of embedded generation capacity and the existing transmission corridors face capacity constraint risks.


On October 12, 2020, the entire city witnessed a major power blackout event due to the grid constraints. The HVDC transmission link will enhance grid stability by providing an interface with the state and national grids.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)



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India Inc profit surges 65%, world entering green energy era



World entering a highly disruptive green energy era, says Mukesh Ambani

Reliance Industries (RIL’s) annual report released on Sunday highlighted the company’s focus on new energy solutions, with Chairman and Managing Director (MD) Mukesh Ambani stating that the age of fossil fuels will not conti­nue much longer. RIL has sought shareholders’ approval to give Ambani another five-year term as MD till 2029 at nil salary. The recently demerged Jio Financial Services, which “will leverage the prowess of digital and retail businesses”, was expected to be listed soon. Read more
 


Q1 results: India Inc profit surges 65% but shows lopsided growth

There has been a sharp recovery in the headline corporate earnings in the April-June 2023 quarter (Q1FY24), after a dismal showing by early bird companies. The combined net profit of the 983 listed companies that have declared their quarterly results, so far, was up 64.7 per cent year-on-year to record a high of Rs 2.68 trillion in the first quarter, but growth in earnings remained lopsided because most of the incremental gains came from a handful of companies. Read more


Curbs on PC, laptop imports: 3-month breather set to light up Diwali season

Original equipment manufacturers (OEMs) heaved a sigh of relief after the government decided to delay the licensing mandate for the import of personal computers by nearly three months. With this, import restrictions are not expected to dampen PC (including laptops, desktops, notebooks, and workstations) shipments ahead of the upcoming festival season. The licensing mandate for imports of PCs is now effective from November 1. Still, the government’s move will increase the compliance burden on original equipment manufacturers, affecting certain companies more than others. Read more


Surging prices: Indian refiners push the envelope on Russia crude oil

Indian refiners are concerned after the European benchmark Brent crude rose to the highest level since mid-April, marching towards $90 a barrel. The rise in Brent prices and the output cut by Moscow this month have made Russian Urals crude costlier, complicating matters for Indian importers, led by Indian Oil and Reliance Industries. Read more


No end in sight? Food price hike likely to disturb India’s inflation maths

Prices of the majority of food items, led by tomatoes and other vegetables, have been on an upward trajectory since the past few months. Incessant rains in major growing areas in July, that inundated fields and damaged standing crops, affected vegetable supplies in the urban and semi-urban areas. Read more



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World entering a highly disruptive green energy era, says Mukesh Ambani



Reliance Industries (RIL’s) annual report released on Sunday highlighted the company’s focus on new energy solutions, with Chairman and Managing Director (MD) Mukesh Ambani stating that the age of fossil fuels will not conti­nue much longer.


RIL has sought shareholders’ approval to give Ambani another five-year term as MD till 2029 at nil salary. The recently demerged Jio Financial Services, which “will leverage the prowess of digital and retail businesses”, was expected to be listed soon. 


Reliance Jio has received a $2.2 billion fund support from Swedish Export Credit Agency (EKN) to finance equipment for the 5G rollout, according to the report. The company has largely procured telecom gears from Swedish firm Ericsson and Finnish company Nokia to deploy its 5G network. In the report, Ambani said the company’s initiatives in the solar value chain and green hydrogen were progressing well.


“The world is entering a new energy era, which is going to be highly disruptive. The age of fossil fuels, which powered economic growth globally for nearly three centuries, cannot continue much longer,” Ambani was quoted in the firm’s latest annual report for FY23.


The oil to chemicals (O2C) and oil and gas segments together contributed more than half of the company’s total Ebitda in FY23. Ebitda refers to earnings before interest, taxation, depreciation, and amortization.


Addressing this business segment, Ambani said: “Our O2C business is transforming. We are switching to renewable sources of energy and newer energy technologies, while promoting the concept of a circular economy, especially for our petrochemical products. Sustainable business techniques are rapidly gaining momentum.”


Ambani said the company was making significant strides in establishing a world-class solar energy value chain and progressing on building a green hydrogen ecosystem. “Our goal is to provide affordable green hydrogen as a viable alternative to traditional fuels,” he said, noting that the first-ever green hydrogen production was achieved with the firing of torrefied biomass in gasifiers in FY23.


The report outlined that RIL is in the advanced stages of designing 50 TPD B2H demo plants to produce green hydrogen based on patented technology, offering the lowest operating costs for green hydrogen production.


RIL, in its annual report note, noted that after proving cost and performance targets, the company aims to progressively commence the transition from Grey to Green Hydrogen by 2025.


Ambani will address shareholders at the company’s 46th annual general meeting (AGM) on August 28. During the AGM, the company will also seek a re-appointment for Ambani as MD for another term of five years (starting from April 2024), as the billionaire will turn 70 in April 2027.


RIL’s AGM serves as a key event for the street, which looks out for management guidance on financial metrics, such as debt and business strategies. Analysts have noted that developments in the new energy business will be a key focus at the upcoming AGM.


One of the key priorities for the O2C business, according to the report, is to transition from being a commodity product supplier to customer ownership through solutions and services.


Regarding its oil and gas business, the annual report noted that domestic production was at a 10-year high. The company expects oil demand to remain healthy due to steady economic growth. “New supply from upcoming refining capacities in the Middle East, China, and Africa will likely keep the market balanced,” the report said.


On the recently demerged financial services businesses, Ambani said: “As various financial services are governed by different regulatory frameworks, we believe an independent financial services entity will allow us to access the opportunities available in the Indian market.”

He said the business aims to provide simple, affordable, and innovative digital-first solutions. The report said the new entity was expected to unlock value for shareholders and give them an opportunity to be a part of a new growth platform.

World entering a highly disruptive green energy era, says Mukesh Ambani



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From ports to mines, Gautam Adani wants all its businesses to go green



On 18 July, as Gautam Adani, Chairman of his eponymous group, addressed his shareholders, he looked resilient in a finely-tailored dark suit and a printed pink tie. He took a quick look at his journey in the last three decades and said the group’s true ambitions lay ahead.


A large part of that ambition looks green. Adani devoted a precious few minutes of his 31-minute address to the group’s green businesses, saying it had the largest operational renewable energy portfolio in the country and was focused on developing the lowest-cost green electron.

First Published: Aug 06 2023 | 7:33 PM IST



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Top Stocks to Watch today, July 31: Adani Green, Maruti, Power Grid, NTPC, PEL



Stocks to Watch on Monday, July 31: Asia-Pacific markets rose on Monday even as China’s factory activity for July remained in contraction territory for the fourth straight month. Hong Kong’s Hang Seng index surged over 1.71 per cent, China’s Shanghai Composite was up 1.27 per cent, Japan’s Nikkei 225 popped 1.83 per cent, and South Korea’s Kospi advanced 0.88 per cent.


At 7:50 AM, Gift Nifty quoted at 19,790 as against Nifty50’s spot close of 19,646 last Friday and Nifty Futures’ last close of 19,752.


Overnight, the Dow rose 0.5 per cent, while the S&P 500 added 1 per cent, and the Nasdaq Composite advanced 1.90 per cent in the US.

Earnings-driven stocks:

Q1FY24 results:

Adani Green, Adani Transmission, Asahi India Glass, Bajaj Hindusthan Sugar, Best Agrolife, Bosch, Butterfly Gandhimathi Appliances, Castrol India, Gail India, Go Fashion (India), Heritage Foods, H.G. Infra Engineering, HIL, HMA Agro Industries, Infobeans Technologies, India Pesticides, IRB Infrastructure Developers, JBM Auto, Kaynes Technology India, Kei Industries, Lakshmi Machine Works, Maruti Suzuki India, Navin Fluorine International, Nocil, Oberoi Realty, Petronet LNG, Power Grid, Prakash Industries, R Systems International, Som Distilleries and Breweries, Shivalik Bimetal Controls, Sumitomo Chemical India, Transport Corporation of India, UPL, and Welspun India.


Total revenue from operations dipped slightly to Rs 43,390.02 crore from Rs 43,560.72 crore in the same period a year ago.


SBI Card: SBI Card’s net profit dropped 5.27 per cent to Rs 593.31 crore during the June quarter as compared to the same period last year when it was Rs 626.91 crore. 

Net interest margin (NIM), a key measure of profitability, fell 176 basis points to 11.5 per cent, due to a drop in the mix of higher-yielding revolvers and 197 basis-point rise in cost of funds.


Marico: It reported a consolidated profit of Rs 436 crore for the June quarter, up 15.6 per cent over Q1FY23. Revenue from operations fell 3.2 per cent YoY to Rs 2,477 crore during the quarter on weak India business and moderate growth in international business.


Uco Bank: State-owned lender reported profit of Rs 223 crore for Q1FY24, rising 80.8 per cent over corresponding period last fiscal, despite higher provisions, driven by surge in operating profit.


Bank of India: The public sector lender has recorded standalone profit at Rs 1,551 crore for the quarter ended June FY24, a 176 per cent year-on-year growth, with net interest income increasing 45 per cent YoY to Rs 5,915 crore. Net interest margin improved by 49 bps YoY to 3.03 per cent in Q1FY24.


Multi Commodity Exchange of India: MCX recorded consolidated profit at Rs 19.6 crore the quarter ended June FY24, falling 52.6 per cent over a year-ago period, impacted by dismal operating performance.


IDFC First Bank: Private sector lender IDFC First Bank’s net profit rose by 61 per cent in the quarter that ended on June 30 (Q1FY24) on a year-on-year (YoY) basis at Rs 765 crore driven by strong growth in operating income.


Nazara Technologies: The gaming firm reported a 31 per cent year-on-year rise in net profit for the first quarter of FY23-24 at Rs 20.9 crore. Revenue rose 14 per cent YoY to Rs 254.4 crore, while Ebitda increased by 10 per cent to Rs 33.1 crore.


Five Star Finance Bank: The Chennai-based lender reported a 32 per cent year-on-year growth in its first quarter net profit at Rs 184 crore led by strong growth in disbursements and higher interest income. 


Total assets under management (AUM) stood at Rs 7,583 crore as of June 2023 as against Rs 5,297 crore YoY.


United Breweries: The  beer maker reported a 15.9 per cent year-on-year decline in net profit at Rs 136.2 crore for the first quarter that ended June 30, 2023. The total revenue stood at Rs 2,274.8 crore during the period under review, down 6.7 per cent YoY. 


Star Health and Allied Insurance: The private health insurer reported a standalone profit of Rs 288 crore, in the quarter ended June, up 35 per cent YoY. The company earned a net premium of Rs 2,801 crore, a 19 per cent increase over a year earlier.


Equitas Small Finance Bank: The bank reported a 97.1 per cent jump in its profit after tax for the April-June 2023 quarter at Rs 191.20 crore, last Friday, compared to Rs 97 crore seen last year. The bank said it registered strong disbursements growth of 47 per cent YoY to Rs 4,757 crore.


News-based stocks:


Bank stocks: For the fortnight that ended on July 14, loan growth stood at 20.2 per cent for the Indian banking sector against expectations of 15.6 per cent growth. Deposits, meanwhile, improved to 13.2 per cent vs expectations of 12.6 percent.


Shriram Finance: Madras High Court sets aside order passed by the Enforecement Directorate (ED) for levying penalty of Rs 5 crore on the company and certain directors of erstwhile SHMPL. It will not have any material impact on the financials of the company.


Hero Motocorp: The two-wheeler maker will close Harley-Davidson X440 online bookings on August 3. Production will start in September.


Fino Payments Bank: The board approved a proposal for transitioning to a small finance bank. The approval is subject to fulfilling all regulatory requirements for the transition. 

Electronics Mart India: The company has commenced the commercial operation of a new multi-brand store under the brand name ‘Bajaj Electronics’ at Yadadri-Bhuvanagiri District, Telangana.


Power Grid Corporation of India: The state-run company has been declared the successful bidder under tariff-based competitive bidding for two inter-state transmission system projects under build, own operate and transfer (BOOT) basis. The Letters of Intent for both the projects have been received by Power Grid.


MMTC: The public sector company has received the notices of default initially to the tune of $11.50 million addressed to its subsidiary MTPL Singapore from overseas branches of Indian Overseas Bank, Bank of India and UCO Bank.


Godrej Properties: The Mumbai-based real estate developer said the board members will meet on August 2 to consider the proposal of raising of funds by issue of debt securities via private placement


Piramal Enterprises: The company has approved a buyback of 14 million equity shares worth Rs 1,750 crore. The shares will be bought at Rs 1,250 apiece. The buyback size represents 5.87 per cent of total paid-up equity share capital.


Tinna Rubber and Infrasructure Ltd: The company’s Board has approved issue of equity bonus shares in proportion of 1:1 subject to the approval of shareholders at the ensuing annual general meeting and other statutory/regulatory approvals.


Power Grid Corporation: The company won bids for two inter-state transmission projects on a build, Own, operate, and Transfer basis in Rajasthan and Andhra Pradesh. Company will also raise up to Rs 5,700 crore in FY24.


Gland Pharma: The drugmaker got zero observations and a ‘No Action Indicated’ classification from a U.S. FDA inspection at its Visakhapatnam Sterile Oncology facility.



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