Adani Group shares Witnesses Phenomenal Surge of Rs 50,501 Crore in a Single Day

New Delhi : In a spectacular display of investor confidence, billionaire Gautam Adani’s ports to power conglomerate experienced an astounding increase of over Rs 50,501 crore in market capitalisation on Tuesday. This surge was seen across all the 10 listed group companies, driven by renewed interest from domestic investors.

At the end of the trading session on Tuesday on the Bombay Stock Exchange (BSE), the combined market capitalisation of the 10 Adani Group companies stood at over Rs 10.6 lakh crore. This marked a substantial gain of Rs 10,501.26 crore compared to the previous year’s market capitalisation of around Rs 10.1 lakh crore, as reported by stock exchange data.

Market experts attribute the surge in stock prices to a surge in interest from domestic investors. “Definitely, there is significant interest from investors like retail, HNIs, and family offices. Also, the market is catching up with the fundamentals of the Adani Group companies. The Hindenburg issue has taken a backseat, and the market is judging the group by its financial performance,” stated a head of research at a leading domestic brokerage house.

Among the notable performers, Adani Green Energy Ltd (AGEL), the group’s renewable energy arm, along with Adani Total Gas Ltd (ATGL), the city gas distributor, and news broadcaster NDTV, all witnessed their share prices hitting the upper circuit limits.

AGEL led the charge with an impressive 10% gain, closely followed by Adani Power with a substantial 9.3% increase. Adani Enterprises, the flagship firm of the Adani Group, saw a gain of 2%, elevating its market capitalisation to Rs 2.81 lakh crore. Adani Transmission saw a significant 8% gain, raising its current market price to Rs 834.80 and propelling its market cap to Rs 93,121 crore on the BSE.

Shares of Adani Wilmar rose by 4.57%, driving its market price to Rs 416.65, and consequently increasing its market capitalisation to Rs 54,151 crore. ATGL witnessed a 5% gain, elevating its market cap to Rs 72,856 crore. Adani Ports also followed suit, rising by 1.90% to Rs 749.35 and raising its market cap to Rs 1,61,870 crore.

The cement sector stocks of Adani, Ambuja Cements, and ACC saw healthy growths of 4.10% and 4.83%, respectively, elevating their market caps to Rs 87,418 crore and Rs 35,528 crore.

The recent surge in the Adani Group’s market value reflects the investor confidence-building measures implemented by the conglomerate after the Hindenburg report. The group’s market value has impressively recovered from its post-Hindenburg lows of Rs 6.5 lakh crore to over Rs 10.6 lakh crore.

The US short-seller Hindenburg Research had released a damning report in January, alleging accounting fraud and stock price manipulation at Adani Group. This report triggered a stock market rout that had erased about USD 145 billion in the conglomerate’s market value at its lowest point.

Adani Group vehemently denied all allegations by Hindenburg and devised a comeback strategy that includes reassurance to investors, debt pre-payment, and a scaling back of spending on new projects.

Strategic investments by US-based investment firm GQG Partners further solidify the Adani family’s commitment to growth and exemplify confidence in the group’s robust business model despite the past Hindenburg crisis.

The financial performance of Adani Group’s listed portfolio also displayed remarkable growth, with an EBITDA increase of 36% to Rs 57,219 crore in FY23, underscoring the resilience of the group’s operations amid challenges.

(News source PTI)