Adani Green Energy Share Price Continues Rally, Soars Over 9%

Adani Green Energy Ltd. saw a significant surge in its share price in early trade on Monday, gaining nearly 10% after a logging its best session in almost a year on Friday. The stock has recovered losses which were triggered by news of supposed US indictment of group associates.

The boost follows a Bloomberg report indicating that Adani Green is considering reviving its previously scrapped dollar bond offering between April and June. If realised, the bond issuance would signal the company’s resilience, despite the ongoing US investigation into Adani Group’s founder, Gautam Adani.

In addition to the bond offering, AGEL plans to raise up to $500 million by February through either a bank facility or a private placement in the offshore market. This move is seen as part of the company’s strategy to strengthen its financial position and continue expanding its renewable energy footprint.

Over the past year, Adani Green Energy’s stock has climbed by approximately 26.79%, with a notable 45% jump in the last week alone. The stock also hit its upper circuit limit of 20% on Friday, reflecting heightened investor optimism.

The recent rally comes on the heels of a broader recovery in Adani Group shares, which saw a boost of over Rs 50,000 crore in market value on Friday. This recovery follows a period of challenges for the conglomerate, including the US indictment.

The scrip rose as much as 9.35% to Rs 1,447.70 apiece. It pared gains to trade 5.92% higher at Rs 1,402.25 apiece, as of 09:42 a.m. This compares to a flat in the NSE Nifty 50 Index.

It has risen 24.78% in the last 12 months. Total traded volume so far in the day stood at 10 times its 30-day average. The relative strength index was at 50.

Out of four analysts tracking the company, three maintain a 'buy' rating, none recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 39.3%.