Indian renewable energy producer Azure, whose majority shareholder is Caisse de Depot et Placement du Québec, has rebounded and is up 50% since the start of the week.
Posted at 11:00 am
The rise in Azure Power Global’s stock on the New York Stock Exchange comes after the significant drop in value recorded last week on the surprise departure of the CEO and the disclosure of grievances through a launcher alert.
Azure stock closed at $5.29 on Wall Street on Thursday, but remains a far cry from the levels of recent months. At its peak in January last year, the stock was worth more than $50.
The Caisse became the majority shareholder in Azure two years ago and now holds a 53% stake, a stake that was increased earlier this year.
By our calculations, the Caisse has invested around half a billion dollars in Azure over the years and that investment is worth around $180 million today.
The Ontario Municipal Employees Retirement System (OMERS) is the second largest shareholder in Azure after the Caisse. The two entities together own nearly 75% of Azure and each have one representative on the board.
On August 29, Azure announced the surprise departure of its CEO, who had been in office for just two months. The company also said that day that it received a complaint from a whistleblower in May about possible irregularities and misconduct by employees. Azure said it had evidence of data and information tampering.
Two days later, the CEO tried to reassure investors by answering their questions during a conference call. Alan Rosling expressed confidence in the “solidity” of Azure’s operations and was excited about the “compelling opportunity” that renewable energy offers in the energy transition.
He also said the whistleblower’s allegations related to a single company facility and a “very small number” of employees, but would not say whether the manipulated information touched on energy production data, revenue, costs or anything else.
While Mr. Rosling does not anticipate that the situation will require any restatement of previous financial statements, the financial statements for the year ended March are still not available and it is still unclear when they will be available.
The find had indicated this The press last week that the organization had “strong long-term” confidence in the renewable energy sector, which “plays a critical role in addressing the climate challenge.”
The Caisse added that as a shareholder, it expects its portfolio companies to adhere to the highest standards of governance and compliance and to deal with any related questions or issues quickly and efficiently.
Azure is the type of investment that is part of the Caisse’s climate strategy, which specifically aims to hold $54 billion in green assets by 2025 to actively contribute to a more sustainable economy.
Azure Power Global was founded 14 years ago and was listed on the New York Stock Exchange in 2016. In particular, the Company operates a solar energy platform in India.