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Adani Green Energy Falls 36.61% in Five Days, Hits New Low at ₹932.90 Amid TotalEnergies Pause

Adani Green Energy (AGEL) fell by 11.36% on Monday as TotalEnergies announced that it was no longer willing to commit any more new financial contributions to the Adani Group companies. This comes after a federal indictment in the United States charged Gautam Adani and his nephew Sagar Adani of being a part of an alleged corruption scheme involving the operations of the company.

France's TotalEnergies, with a 19.75% stake in Adani Green Energy, confirmed it would defend its minority interest. TotalEnergies said it does not condone any form of corruption and added that it was not associated with the alleged corruption scheme with the Adani Group. The indictment only implicates certain individuals in the Adani Group while not implicating Adani Green Energy.

Total Energies Statement

TotalEnergies said in a statement that it would take necessary actions to protect its interest in project companies, with which it has joint-venture participation through AGEL. TotalEnergies has put its investments on hold pending a resolution of the ongoing legal issues concerning the Adani family. Earlier, TotalEnergies was not apprised of the investigation that had been undertaken against the Adani family on allegations of corruption.

Adani Green Energy Shares Drop 36.61% Amid TotalEnergies' Concerns

The Adani Green Energy share fell to ₹932.90, a fresh trough for the day. These losses followed a string of consecutive falls and added to 36.61% losses in five trading sessions so far. TotalEnergies had sunk in some serious investments in Adani Green's renewable energy projects, such as joint ventures, in India.

The sharp fall of the shares of AGEL shows that there is a fear about how the future may appear for Adani Group's projects and reputation since the company denies any fraud being perpetrated. The stoppage of financial contributions by TotalEnergies also denotes serious effects present legal issues can play on the activities of Adani Group.

Although this set back occurred, Adani Green Energy is one of the biggest players in India's renewable energy sector, and TotalEnergies will retain its equity position in the company, at least pending such clarification about corruption allegations. Of course, investors and other market followers will keenly monitor further developments.