Adani Ent, Adani Power, Adani Green extend gains: Why Group stocks are surging?
Most of the Adani group stocks extended gains in Wednesday’s opening trading session, even as Sensex, Nifty fell about 0.5%. The group’s flagship firm Adani Enterprises shares rose over 2% and was the top Nifty 50 gainer, while Adani Ports and Special Economic Zone (APSEZ) gained more than a per cent on the BSE. Adani Power, Adani Transmission, Adani Green Energy, Adani Total Gas hit upper circuit level of 5% each.
Adani Group on Tuesday said the group prepaid share-backed financing of ₹7,374 crore (USD 902 million) ahead of its latest maturity in April 2025, in continuation of its promoters’ commitment to cut the overall leverage backed by Adani-listed company shares.
On the other hand, Adani Enterprises is finally out from NSE’s short-term additional surveillance measure (ASM), after being under the framework for a month. In a circular on Monday, NSE revealed that Adani Enterprises stock is excluded from the short-term ASM framework with effect from March 8, 2023.
With the repayment of the said ₹7,374 crore to various international banks and Indian financial institutions, the promoters of the flagship company, Adani Ports, will release 155 million shares, representing 11.8% of the promoters’ holding; Adani Enterprises‘ promoters will release 31 million shares, representing 4 per cent of promoters’ holding; Adani Transmission’s promoters will release 36 million shares, representing 4.5% of promoters’ holding while Adani Green Energy will release 11 million shares which comprised 1.2% of promoters’ holding.
Along with the repayments done earlier in the month of February, the conglomerate said Adani has prepaid $2,016 million of share-backed financing, which is consistent with promoters’ commitment to prepay all share-backed financing before March 31, 2023, according to a statement from Adani Group.
The stocks have been rising after the US boutique investment firm GQG Partners’ GQG.AX $1.87 billion investment in the Gautam Adani-led conglomerate on Thursday, after facing a sharp fall since January 24, when the US-based short-seller Hindenburg’s report was released.
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