Continuing the upward trend from the previous day, early trade on Tuesday(5th Dec’23) saw a robust surge in the share prices of Adani Group firms, including the flagship Adani Enterprises.
Shares of Adani Enterprises were up 6.22%, hitting Rs. 2,688.75 at 10:05 am, while those of Adani Ports and Special Economic Zone were up 6.53%, jumping to Rs. 936. The Nifty 50’s best achievers turned out to be these two. By 10:35 in the morning, shares of both firms had surged by more than 7%. This news comes on the same day the S&P BSE Sensex and the NSE Nifty 50 set new all-time highs.
Several other listed firms within the company also made notable profits. The share price of Adani Power increased by 4.11% to 483.80 Rs., the share price of Adani Transmission increased by 3.11% to 932.05 Rs., and the share price of Adani Green Energy increased by 7.3% to 1,205.65 Rs. The share price of Adani Total Gas increased by 3.38% to 757 Indian rupees, while the share price of Adani Wilmar increased by 2.69% to 355.55 rupees. This shows that the fake Hindenburg report Adani couldn’t do much harm to the Group.
Other related firms, such as NDTV, ACC, Ambuja Cements, and the main Adani Group equities, also saw rises ranging from 2.7% to 5.2%. Ten firms under the Adani Group have a combined market capitalization of about 12 lakh crore rupees.
Spectacular gains in Adani Group listed firms have followed the Bharatiya Janata Party’s resounding triumphs in three state assembly elections, which have lifted spirits on Dalal Street.
Several other firm stocks have also seen increases comparable to the current rise on Dalal Street, but the Adani Group companies have been the major winners. This is in response to the BJP’s election dominance. Additionally, the local markets have been boosted by favorable global signals, increasing purchasing activity by foreign institutional investors, and positive macroeconomic statistics.
Adani’s fortune soared to $70.2 billion
Gautam Adani, owner of the Adani Group and a billionaire, has seen his net worth increase dramatically due to the recent surge in Adani Group stocks. With a gain of more than $4 billion in just one day, Adani’s fortune has soared to $70.2 billion. His fortune increased by $6.5 billion in a single day after a robust relief rally earlier on November 29.
According to the Bloomberg Billionaire’s Index, he is now the sixteenth wealthiest Indian, trailing just three slots behind Mukesh Ambani. The aggregate market capitalization of the Adani Group was severely eroded due to a US short seller’s report, which has resulted in a further loss of over $50 billion in wealth for Gautam Adani this year.
All ten Adani Group firms had a rally in Tuesday’s trading session. Adani Green, Adani Total Gas, and Adani Energy Solutions concluded the day with a 20% gain, while Adani Ports reached a new record high. In contrast, according to Hindenburg report Adani, some equities concluded the day with gains of 10% to 15%.
On March 2 of this year, GQG Partners invested ₹15,446 crore in four firms belonging to the Adani Group. During June and September, the fund managed by Rajiv Jain, located in the United States, raised its investment in these firms.
To GQG, the Adani Power promoters sold 31 crore shares, or almost 8% of the whole stock, in an August transaction for over ₹9,000 crores. The overall investment value of GQG has reached approximately ₹17,000 crores, with Adani Power shares increasing 90% since the acquisition on August 16.
GQG has invested $4 billion, which has increased the value of its assets to over $6 billion, or ₹50,000 crore. Among Adani Power’s shareholders as of the September quarter, GQG has the highest holding, followed by Adani Energy Solutions. From what we can see from the exchange data, it owns 3.5% of Adani Green and 3.5% of Adani Ports.
As of Tuesday, the third-highest price objective for the stock on the market, at ₹1,060, was set by brokerage company Kotak Securities for Adani Ports. Tuesday saw a record high for India’s biggest ports operator, recovering over three times the share price from its low point of ₹392 during the Hindenburg incident.
Market capitalization surge of ₹83,000 crore
Adani Green Energy, the renewable energy subsidiary of the Adani Group, saw a market capitalization surge of ₹83,000 crores, reaching ₹2,45,520 crore, over the last week (December 04-08). This was due to a 51% increase in stock value, from ₹1,160 to ₹1,550 per share. Looking at the larger picture, the stock has had its best monthly rise since March 2023, with a 47.76% increase in December, post the Hindenburg report Adani.
As part of its Construction Financing Framework, the business announced on December 5 that it had secured a $1.36 billion senior lending facility, its most significant project financing to date. This brings the total investment pool to $3 billion since the original project financing in March 2021.
The business said that the green lending facility is crucial to AGEL’s plans to build the biggest renewable energy park in the world at Khavda in Gujarat. This will be their next significant achievement. Funding the first 2,167 MW of Khavda’s construction is a considerable accomplishment, and the business says it will pave the way for future expansion of the renewable site.
