Shares of Adani Green Energy gained over a percent in early trade today after Fitch Ratings affirmed rating of Adani Green Energy Limited Restricted Group's 1's (AGEL RG1) $500 million senior secured notes due in 2024 at BB+, with outlook stable. AGEL RG1 includes three subsidiaries of Adani Green Energy namely Adani Green Energy (UP) Limited, Parampujya Solar Energy Private Limited (PSEPL) and Prayatna Developer Private Limited.
Shares of Adani Green Energy gained after two sessions of fall today. The stock climbed 1.16% to Rs 982.15 against the previous close of Rs 970.80 on BSE. The stock opened higher at Rs 975.30 on BSE today. Adani Green Energy shares have lost 55.33 percent in a year and fallen 50 percent since the beginning of this year. Total 0.88 lakh shares of the Adani Group firm changed hands amounting to a turnover of Rs 8.53 crore on BSE. Market cap of the firm rose to Rs 1.53 lakh crore.
The large-cap stock hit a 52-week high of Rs 2574.05 on August 23, 2022 and a 52-week low of Rs 439.95 on February 28, 2023.
In terms of technicals, the relative strength index (RSI) of Adani Green Energy stands at 59.5, signaling neither the stock is overbought nor oversold. The stock has been highly volatile with its beta at 1.2 in the last one year. Adani Green shares are trading higher than the 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
AGEL RG1 operates solar generation assets with a combined capacity of 930MW across India. The US dollar notes were issued in part by each of the three SPVs in the restricted group and stapled together to mimic the structure of the restricted group. The rating on AGEL RG1, Fitch said, is underpinned by long-term fixed-price power purchase agreements (PPAs), commercially proven technology with a pure solar portfolio, experienced operation and maintenance (O&M) contractors, and adequate financial profile.
Fitch said it considered revenue from sovereign-backed NTPC and Solar Energy Corporation of India (SECI), to which AGEL RG1 contracts 57 per cent of its total capacity, as fully contracted revenue and apply the fully contracted project threshold. SECI's credit quality does not constrain the rating, as revenue exposure to SECI presents a systematic sector risk, Fitch Ratings said.
AGEL RG1 contracts 40 per cent of its total capacity with NTPC and 17 per cent with SECI, with the remaining capacity contracted with various state distribution companies under 25-year fixed-price PPAs, which protect the portfolio from merchant price volatility, Fitch said.
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