Gautam Adani’s Adani Green Energy surged by 5% on the BSE on Monday, March 22. The company’s share price touched a 52-week high and was locked at upper-circuit of Rs. 1,210.5 up Rs. 59.55. The company’s bullish rally can be attributed to the fact that it was awarded wind power project by Solar Energy Corporation.
On the weekend the company also announced that it signed 100% acquisition agreement with Toronto-based SkyPower Global. The Toronto-based company currently owns 50 MW solar energy plants in Telangana. With the acquisition, the Adani Green Energy LTD will increase its renewable energy capacity of 3,395 MW and have a total renewable energy portfolio standing at 14,856 MW. The AGEL stock is up for a second straight session.
The Adani Renewable Energy Holding Fifteen Ltd. also participated in a wind energy tender issued by Solar the centre-run Solar Energy Corporation of India. The tender issued by the SECI was to set up a 1,200 MW wind power projects that will be interstate transmission connected. The tariff issued by the SECI for the project was Rs.2.77/kWh for a period of next 25 years. The company was awarded the tender and thanks to it, the AGEL’s total capacity stands at 15,165 MW.
Adani Green Energy issued a statement after being awarded the tender and said, “AREHFL, a subsidiary of the AGEL, had participated in the tender issued by SECI for setting up 1,200 MW ISTS-connected wind power project (Tranche-X) and received the letter of award (LOA) to set up 300 MW wind power project under this tender.”
The Managing Director and CEO of Adani Green Energy issued a statement after the company’s tender participation which said, “Wind energy forms an essential part of our business approach and is expected to continue a vital contribution to our growth plans. This award of 300 MW wind power project is in line with our commitment to ramp up creation of a sustainable ecosystem for transitioning towards a greener future.”
Meanwhile, Adani Green Energy’s newly acquired SkyPower will be exiting Indian markets. The company has renewable energy assets worth 350 MW. Several companies were looking to buy-out the company’s 50MW project that’s running in Telangana. The 50MW project started its operation in October 2017 and currently has a PPA (Purchase Power Agreement) with Southern Power Distribution Company, Telangana.
JSW Group’s renewable energy arm JSW Energy’s share also rose 2% on Monday after the company’s subsidiary JSW Future Energy received tender award for a total 450MW wind capacity. The tender was awarded by the Solar Energy Corporation of India against Competitive Bid invited by the company for setting up 1200 MW wind power projects. JSW Energy’s stock thanks to its bid in the tender is trading at Rs. 85.95, up by 1.5% on the BSE.
Earlier on Friday, March 19, the Indian stock market finally broke the corrective course of bearish days and ended on a positive note. Both Bombay Stock Exchange and National Stock Exchange were up 1%. While BSE shot up 641 points and closed at 49,858, NSE jumped 186.15 points to close at 14,744.
However, on Monday, Sensex slipped down and has been trading in the negative with 49,368 points, down 0.98%. Nifty50, which works in tandem with the Indian stock indices, fell just below 14,700. While Dr Reddy’s, Tech Mahindra, Sun Pharma were the exceptions and have been trading in green, Reliance Industries, ICICI, HDFC and other banking stocks have been showing red.
