Adani Green Energy Shares: Legal Hurdles Cleared, Bright Future Ahead!

Adani Green Energy shares will be in the spotlight this Wednesday because five legal petitions about its wind energy projects in northeastern Sri Lanka have been dropped. The petitions were withdrawn after the Attorney General’s office moved to support Adani’s decision to cancel its projects and inform the Board of Investment. Last month, the Indian company announced it would stop working on wind energy projects in Mannar and Pooneryn.

These legal petitions were filed in 2024 after the last government approved the project in May the previous year. The petitions raised concerns about environmental issues and a lack of transparency.

The Adani Group decided to leave the project after a new Sri Lankan government, led by President Anura Kumar Dissanayake, chose to review and renegotiate the power purchase agreement. The price that was previously set at eight cents per unit was seen as too high, and the new government wants to bring it down to below six cents. The National People’s Power (NPP) party, looking ahead to the presidential election in September, promised to cancel the project. In December, the new cabinet decided to renegotiate the price.

On Tuesday, government spokesman Nalinda Jayathissa confirmed that the government wants lower prices for electricity.

As for Adani Green Energy shares, analysts have given an average target price of Rs 1,304, indicating a 45% increase from current prices. Six analysts recommend buying the stock.

On Tuesday, Adani Green Energy shares closed at Rs 901, rising by 0.6% on the BSE, while the Sensex increased by 1.53%. The stock has dropped by 54% over the past six months but has increased by 10% over the last two years. The company’s market value is Rs 1,42,729 crore.

(Disclaimer: The experts’ views do not represent the opinions of Thellv.news)