Paris-based energy giant TotalEnergies is preparing to divest up to 6% of its holding in Adani Green Energy Ltd (AGEL), sources familiar with the matter said. The move is seen as part of the company’s broader strategy to reduce debt and optimize its investment portfolio.

TotalEnergies currently holds nearly 19% of AGEL, split between two subsidiaries: 15.58% through TotalEnergies Renewables Indian Ocean Ltd and 3.41% via TotalEnergies Solar Wind Indian Ocean Ltd. The company first acquired its stake in 2021 for approximately US$2.5 billion, a holding that could now be valued close to US$8 billion, reflecting AGEL’s strong growth over the past few years.

The planned sale, which could fetch around ₹10,200 crore (US$1.14 billion) if fully executed, may be offered back to AGEL or to other investors, according to sources. Despite the partial exit, TotalEnergies and Adani continue to maintain a strong partnership in renewable energy. In 2024, the two firms formed a 50:50 joint venture to manage a 1,150 MW solar power portfolio, reinforcing their commitment to India’s renewable energy sector.

This move comes as TotalEnergies seeks to trim its annual capital expenditure, cutting roughly US$1 billion from projected spending and targeting US$15–17 billion per year from 2027 to 2030. TotalEnergies CEO Patrick Pouyanné has previously expressed willingness to sell the stake, even as he acknowledged AGEL’s long-term growth potential.

Analysts say the partial sale reflects a balance between taking advantage of strong valuations and maintaining strategic alliances in the rapidly expanding renewable energy market.