Monday, November 25, 2024

Back Adani Group’s market value rises over ₹2 lakh cr in 5 days rally; stocks gain up to 45%

The risk mood in Adani Group-backed stocks seems to have eased out in the past few days, thanks to the mega block deal which came as a comforter for panic-driven investors. In five trading sessions, Adani stocks have recorded consistent rallies with the majority of them posting double-digit upside in percentage terms. Up to a 45% rise is seen in Adani stocks during these sessions. Riding on the back of bulls, Adani Group’s market value together has climbed more than 2 lakh crore.

On Monday, on BSE, flagship firm Adani Enterprises stock rose 5.5%, while Adani Ports picked up nearly 1%. Other Adani-named stocks such as Adani Wilmar, Adani Power, Adani Total Gas, Adani Green Energy, and Adani Transmission hit yet another 5% upper circuit each. In the media business, NDTV’s share price also gained by nearly 5%. However, in the cement business, Ambuja Cements was down by 1.7% and ACC stock tumbled by 1.5%.

By end of March 6th, Adani Group’s total market cap was nearly 8.85 lakh crore. This is up from 6.82 lakh crore market which was seen on February 27th.

Adani Enterprises is the most valued company of the group in terms of market share. Its market cap stood at 2,26,045.12 crore as of March 6th. Adani Ports followed with a market cap of 1,49,157.59 crore.

Furthermore, by end of March 6th, Adani Transmission’s m-cap is at 87,108.82 crore, Adani Total Gas at 90,283.41 crore; Adani Power at 68,614.94 crore, Adani Wilmar at 57,081.88 crore, Adani Green Energy at 93,473.76 crore, Ambuja Cements at 76,556.55 crore, ACC at 35,035.47 crore and NDTV at 1,489.29 crore.

Adani stocks have been on a winning spree since February 28th. Since then, Adani Enterprises’ share price has rallied the most in the group, zooming by a whopping 45.36% on BSE. Also, Adani Power, Adani Wilmar, and Adani Green Energy have climbed for five consecutive days, advancing by around 21.5% each.

Meanwhile, Adani Ports has been one of the top picks in the Adani Group holding an eighth consecutive day surge. In five trading sessions, this stock has soared over 16.5%. While Adani Transmission and Adani Total Gas have continued to climb for four trading sessions in a row, advancing by around 21% and 21.5% respectively.

Unlike the other mentioned Adani stocks, the cement business has witnessed much slower gains. Ambuja Cements and ACC have surged by nearly 13% and 8% on BSE. These two cement stocks halted their four days winning streak on Monday to trade in the red.

Adani Group stocks have been on the gaining spree after a US-based investment boutique, GQG Partners purchased equity shares of four of its companies for a whopping 15,446 crore in a series of secondary block deals. GQG bought 5,460 crore in Adani Enterprises, 5,282 crore in Adani Ports, 1,898 crore in Adani Total Gas, and 2,806 crore in Adani Green Energy. In percentage terms, GQG bought a 2-4% stake in these companies.

Rajiv Jain, Chairman and CIO of GQG Partners said, one f the major reasons behind investment in Adani firms, will be that these companies “own and operate some of the largest and most important infrastructure assets throughout India and around the world.”

GQG chairman added, “We believe that the long-term growth prospects for these companies are substantial, and we are pleased to be investing in companies that will help advance India’s economy and energy infrastructure, including their energy transition over the long run.”

On the block deal, Naveen Kulkarni, Chief Investment Officer, Axis Securities said, “promoters can use the money raised through the transaction to infuse capital in any group company requiring the funds through warrants, rights issues, or any other instrument. This development will also lead to better sentiments for the market and increase retail participation, which was down due to uncertainty.”

Adani Group is struggling after a US-based short seller Hindenburg released a report in late January, accusing the conglomerate of stock manipulation and other frauds. This wiped out more than 12 lakh crore of the market value of the Gautam Adani-backed group in a month. All ten Adani stocks were in shambles hitting fresh lows, freezing at lower circuits, and erasing billions of wealth.

On January 24, Hindenburg in its report said, “we reveal the findings of our 2-year investigation, presenting evidence that the 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”

At present, the Supreme Court has asked Sebi to investigate Adani Group to check whether there has been any stock manipulation or other allegations and to come up with measures to safeguard investors.

spot_img

Hot Topics

Related Articles