Adani Green Energy shares in focus after rights petitions against Sri Lanka projects withdrawn

Adani Green Energy shares will be in focus on Wednesday after five fundamental rights petitions against its wind energy projects in northeastern Sri Lanka were withdrawn.

The petitions were withdrawn after the Attorney General filed a motion following Adani Green Energy's decision to cancel its wind energy projects and notify the Board of Investment.

Last month, the Indian conglomerate announced its withdrawal from further engagement in the renewable wind energy project in Mannar and Pooneryn.

Fundamental rights petitions were filed in 2024 after the previous cabinet approved the project in May last year. The petitions pointed to the project's environmental hazards and the lack of transparency.

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The Adani Group left the project after the new Sri Lankan government led by President Anura Kumar Dissanayake decided late in December to review the project and renegotiate the power purchase agreement.

The previous government-negotiated price of eight cents was considered too high, with the government aiming to bring it below six cents.

The National People's Power (NPP) government, in the run-up to the September presidential election, had vowed to annul the project. In late December, the new cabinet opted to renegotiate the purchasing price.

Speaking on Tuesday, the government spokesman Nalinda Jayathissa reiterated the government's insistence on lower unit prices.

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Adani Green Energy shares target price

As per Trendlyne data, the average target price of the stock is Rs 1,304, which shows an upside of 45% from the current market prices. The consensus recommendation from 6 analysts for the stock is a 'Buy'.

Adani Green Energy shares performance

On Tuesday, Adani Green Energy shares closed at Rs 901, up 0.6% on the BSE, while the benchmark Sensex gained 1.53%. The stock has declined 54% in the past six months but surged 10% over the last two years. The company’s market capitalization stands at Rs 1,42,729 crore.

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