Adani Green Energy shares hit upper circuit after the company adds two renewable energy projects to its kitty

• Shares of Adani Green Energy hit the upper circuit on March 22 even as the market was down by over 50 points.
• The company’s shares have rallied upwards by over 67% since October 2020, and by over 700% in the last one year.
• Adani Green Energy currently has a total renewal energy capacity of 15,165 megawatts.

Adani Green Energy shares have resumed their upward journey after the company added two new renewable energy projects to its kitty. The two projects together add 350-megawatt to the company’s power generation capacity, taking the total capacity to 15,165 megawatts.

Shares of Adani Green Energy were locked in the upper circuit at ₹1,252 per share, gaining ₹59.60 over the previous closing price. This translates to a gain of 5%.

Upper circuit refers to the maximum price that a stock is allowed to move upward in a day.

Adani Green Energy’s shares have jumped over 67% since October, 2020. While this rally is impressive, it pales in comparison to the steep 700% jump over the last one year.

In the same time, the benchmark Nifty50 index rose by a mere 93%.

Why are shares of Adani Green Energy rallying?

Adani Green Energy has added a total of 350-megawatt renewable energy capacity recently. The first one was due to the acquisition of 100% stake in Toronto-based SkyPower Global’s 50-megawatt solar power project.

Apart from this, the company also won a 300-megawatt wind power project from Solar Energy Corporation of India (SECI). The project term is 25 years and the price has been fixed at ₹2.77 per kilo-watt hour.

Thanks to the addition of 350-megawatt projects, Adani Green Energy’s total renewable energy capacity now stands at 15,165 megawatts. Of this, projects of 3,395-megawatt capacity are already operational while the remaining 11,770-megawatt projects are under implementation, according to the company’s press release.

According to a report by Macquarie Research, Adani Green Energy has more than tripled its operational capacity over the past four years – from a little under 1 gigawatts to nearly 3.4 gigawatts. The company has announced plans to boost this capacity to 6.3 gigawatts by financial year 2022, and to 25 gigawatts by financial year 2025.

1 gigawatt equals 1,000 megawatts.

“Given the government’s ambitious target to reach 175GW of renewable capacity by 2022 and 400GW by 2030, AGEL (Adani Green Energy Ltd) is favourably placed to tap into this mega opportunity,” stated a report by Edelweiss Research, highlighting the favourable position of the company.

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Airtel, Vodafone Idea, Adani Green and other stocks to watch out for on March 22

Adani Green Energy to acquire 50 MW Solar Asset from SkyPower Global

Shares of all Adani group companies, except one, have rallied at least 50 per cent in 2021