All 10 stocks of the Adani Group gained after the promoter increased its holdings in
two key Adani companies last week
The Adani Group, the port to power conglomerate, added a massive Rs 47,050 crore in
shareholder’s wealth as investors showed renewed confidence in the group’s stock
portfolio. Adani Group’s market capitalisation shot up to INR 11.5 trillion on Monday, a
seven-month high. On Friday’s close, the group’s market capitalisation stood at INR
11.02 trillion.
The move has come after the promoters’ increased stakes in the two leading
companies—the flagship incubator, Adani Enterprises Limited(AEL) and Adani Ports
and Special Economic Zone(APSEZ). This has been perceived by the market as the vote
of confidence in the company’s future prospects. At the same time, it also means that
the promoters’ interests are more aligned with the shareholders and is a sign of highest
standards of governance, especially when the promoter holding are as high.
In AEL, the promoter’s stake has been bolstered from 69.87% to 71.93%. Likewise, in
APSEZ, the stake has risen from 63.06% to 65.23%. The promoter buying in the two
companies is worth more than INR 15,000 crore. This amount also includes the share
purchase done by the promoters last month in AEL. This is not only viewed as the
group’s commitment to its core businesses and long-term growth vision, but also as the
strong financial situation at the promoter level.
As a result, all the 10 stocks in the Adani Portfolio showed strong gains led by Adani
Power which gained 7.92% over Friday’s close. Adani Ports and SEZ (6.96%), NDTV
(5.4%), Adani Energy Solutions (5.03%), and Adani Enterprises (3.8%).
Market experts cite the Adani Group’s recent strides in share price as a reflection of its
successful confidence-building measures and renewed interest from global and
domestic investors.
“The Adani Group’s rebound is no mere coincidence. It’s the
outcome of a series of strategic decisions and transparency in their operations.
Investors have had the time to dissect the developments and react positively to
emerging indicators. The promoters have been continuously renewing investor
confidence raising stakes and liquidity at the group level. Those who were previously
apprehensive are now slowly coming back on due to the group’s resilience and
adaptability. The group’s unwavering focus on core infrastructure investments,
complemented by consistent EBITDA growth, projects a clear trajectory of sustainable
success. Moreover, with fundraising efforts being robust at the group level and
impeccable project execution, the group has not only reinstated but also amplified
investor trust in its operational direction going forward. The momentum we’re
witnessing now is just the tip of the iceberg, with more promising returns anticipated
in the long haul,” commented a senior analyst at a leading brokerage firm.
The other Adani Group stocks also clocked decent gains among them were Adani
Wilmar (2.59%), Adani Green Energy Solutions (1.34%), Ambuja Cements (2.66%), and
ACC (1.32%).
The Adani Group’s confidence building measures have been further bolstered by
investments from GQG Partners which invested over $4 billion in several group
companies since March. Investment of $500 million by QIA, one of the world’s largest
sovereign funds has also been taken positively by the markets.
Adani has also been continuing to make investments tying up with global majors to
bolster its investments in the energy and utilities space. The Group recently announced
a joint venture agreement with Kowa Holdings Asia, also headquartered in Singapore.
The 50-50 partnership aims to bolster the sales and marketing of green ammonia, green
hydrogen, and other related products produced and provided by the Adani Group.
