By Kavita Iyer 
New Delhi, September 23: Adani Green Energy is back in the spotlight, and not just for another ambitious expansion move. Its shares have been on a tear, surging nearly 12 percent in a single session, and the company has quietly set up yet another subsidiary in its sprawling renewable energy empire. That combination of boardroom action and stock market frenzy has once again raised the old question: how much of the Adani story is about fundamentals, and how much about sentiment?
A Fresh Subsidiary In The Mix
On September 22, Adani Renewable Energy Holding Eleven Limited, itself a wholly owned arm of Adani Green, incorporated a new entity called Adani Ecogen Three Limited. The paperwork is routine enough: the company will handle the generation, development, distribution, transmission, and sale of electricity from renewable sources. Solar, wind, and perhaps newer technologies down the line.
Adani has a habit of creating dozens of such project-specific companies, each one housing a slice of its clean energy assets. It is a model that makes raising debt and bringing in partners easier. If one project runs into trouble, it does not necessarily drag the entire group with it. This strategy, used by global infrastructure developers for decades, has allowed Adani Green to expand at a pace no other private Indian energy company has managed.
The Market’s Whiplash
Investors clearly liked the signal. On Monday, Adani Green’s stock jumped 11.75%, closing at ₹1,152.30 on the BSE and pushing its market cap close to ₹1.85 lakh crore. At one point during the day, the rally touched more than 14 percent. For a company that has seen its shares swing wildly in the past two years, the latest spike was dramatic even by Adani standards.
The longer view tells a different story. The stock has been as high as ₹2,091.85 in the last year, and as low as ₹758. Such volatility is not unusual for growth stocks, but Adani Green trades at stratospheric levels, a price-to-earnings ratio well above 100. That means investors are paying a huge premium today for the hope of tomorrow’s renewable energy dominance. Any slip in execution, or a policy setback, could make that premium look reckless.
Regulators Keep Watch
The surge did not go unnoticed. Exchanges asked the company to explain the unusual price and volume movement. Adani Green responded with a familiar line: the jump was “purely market driven.” Nothing new to disclose, no hidden deal in the works.
On paper, that is the end of the story. But in practice, such clarifications are part of the new reality for Adani Group companies. Since the Hindenburg Research allegations in early 2023 shook the conglomerate, regulators and investors alike have been quick to demand transparency whenever an Adani stock moves sharply. The group can no longer afford to let speculation swirl unchecked.
Bigger Picture: India’s Renewable Gamble
The creation of Adani Ecogen Three also ties into the national energy story. India wants to hit 500 GW of non-fossil fuel capacity by 2030, and companies like Adani Green are expected to carry much of that load. The company already controls one of the largest renewable portfolios in the world, with more than 20 GW operational or under development.
That scale is impressive, but it comes with risks. Building wind and solar farms requires huge upfront investment, usually financed through debt. Adani Green has been adept at convincing global lenders and investors to back its projects, but the balance sheet remains stretched. Rising interest rates, or delays in land acquisition and grid connectivity, could quickly complicate the picture.
Still, no other private company in India is moving at this speed. Tata Power Renewables and ReNew Energy Global are expanding, yes, but Adani Green continues to set the pace. Each new subsidiary is a signal to the market and to the government that the group is still betting big on clean energy.
The Push And The Pull
For now, the markets are giving Adani Green the benefit of the doubt. Investors are looking past leverage concerns and governance questions, focusing instead on the company’s ability to keep adding capacity. But the high valuations are a double-edged sword. They attract excitement during rallies, and they magnify pain during corrections.
Monday’s stock surge, followed by a quick clarification, is a neat snapshot of where Adani Green stands today: a company that is central to India’s renewable ambitions, yet one that remains under constant scrutiny. Growth and suspicion seem to move in tandem.
The road ahead will likely be just as volatile. For the Adani Group, building megawatts might be easier than calming markets.
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Former financial consultant turned journalist, reporting on markets, industry trends, and economic policy.
- Kavita Iyerhttps://hindustanherald.in/author/kavita/
- Kavita Iyerhttps://hindustanherald.in/author/kavita/
- Kavita Iyerhttps://hindustanherald.in/author/kavita/
- Kavita Iyerhttps://hindustanherald.in/author/kavita/
