SYNOPSIS: Norway’s $1.2 trillion sovereign wealth fund excludes this Adani Group stock over alleged financial crime concerns, marking the second group firm removed under its strict ethical investment guidelines.
During Monday’s trading session, shares of India’s largest and one of the leading renewable energy companies in the world, enabling the clean energy transition and a part of the Adani Group, slipped more than 7 percent on BSE, after Norway’s $1.2 trillion fund exited the stock.
With a market cap of Rs. 1.48 lakh crores, shares of Adani Green Energy Limited is trading in the red at Rs. 898.5 on BSE, down by over 5 percent, as against its previous closing price of Rs. 948.2. The stock has delivered postive returns of around 12 percent in one year, and has gained by nearly 7 percent in the last one month.
News
Norway’s sovereign wealth fund, valued at approximately $1.2 trillion and regarded as the world’s largest, has decided to exclude Adani Green Energy Limited (AGEL) from its investment universe, citing concerns related to alleged links to financial crime. When Norges Bank initially invested in AGEL in July 2020, the company’s share price was Rs. 341.
As of 26th August 2025, the Government Pension Fund Global held a 0.23 percent stake in Adani Green Energy, valued at about $43.9 million. This was the last known disclosure when the fund voted on shareholder resolutions. Norges Bank has not clarified whether it has since divested its entire holding.
With this move, Adani Green Energy becomes the second company from the group to be excluded from the fund’s portfolio, joining a list of more than 200 companies that the Norwegian fund considers inconsistent with its ethical investment standards.
Earlier, in May 2024, Norges Bank had also excluded Adani Ports and Special Economic Zone Limited (APSEZ). The decision was linked to APSEZ’s ownership of a port terminal in Myanmar, following the military coup that ousted the democratically elected government.
At the time of excluding Adani Ports, Norges Bank stated that its Executive Board had determined there was an “unacceptable risk” that the company could contribute to serious violations of individual rights in conflict situations. However, the fund did not provide detailed specifics regarding the alleged violations.
Norges Bank Investment Management, which oversees the sovereign wealth fund, operates under stringent ethical guidelines mandated by Norwegian law. The fund is restricted from investing in companies involved in tobacco or cannabis production, coal mining or coal-based energy, nuclear weapons-related activities, or those facing allegations of human rights violations. These standards have led to the exclusion of several global companies, including Berkshire Hathaway, due to its exposure to coal-linked businesses.
Currently, the fund’s exclusion list includes 16 Indian companies, among them Bharat Electronics Limited, Bharat Heavy Electricals Limited, ITC Limited, Vedanta Limited, Coal India Limited, NTPC Limited and Tata Power Limited.
Financials
AGEL reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 12 percent, from Rs. 2,340 crores in Q3 FY25 to Rs. 2,618 crores in Q3 FY26. In contrast, its net profit slumped during the same period from Rs. 474 crores to Rs. 5 crores, representing a fall of around 99 percent YoY.
Adani Green Energy Limited develops, owns, and operates utility-scale grid-connected solar, wind, hybrid and energy storage solutions. It currently has an operating renewable portfolio of over 17.3 GW, the largest in India, spread across 12 states.
The company has set a target of achieving 50 GW by 2030, aligned to India’s decarbonization goals, and is currently developing the world’s largest renewable energy plant (30 GW) on barren land at Khavda, Gujarat, covering 538 square kilometres, an area 5x larger than Paris.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Adani Group stock crashes 7% after Norway’s sovereign wealth fund exits stock appeared first on Trade Brains.