Stocks & Funds

Adani Enterprises jumps 11% as all group stocks surge – Adani group’s combined market cap increases by over 82,000 crore in two days

Adani stock

Adani Enterprises jumps 11% as all group stocks surge – Adani group’s combined market cap increases by over 82,000 crore in two days

In the first half of trading on Wednesday, Adani Enterprises’ shares soared over 11%, helping the group’s combined market capitalisation surge by over 45,010 crore. All nine group companies posted gains.

In the benchmark Nifty50 index, Adani Enterprises topped the charts among gainers among the nine Adani group stocks.

As part of their annual review process, Indian lenders, led by the State Bank of India, have decided to retain the credit facilities extended to Adani Enterprises.

In the past two days, the combined market capitalisation of the Adani group has increased by rupees 82,224 crore, led by Adani Enterprises alone adding rupees 51,275 crore. As well as leading the gains among Adani group firms, the company’s shares led the benchmark Nifty50 gainers as well.

Adani Enterprises shares are still down 56% from their closing price on January 24, when Hindenburg Research reported on alleged stock manipulation and accounting fraud.

CompanyCurrent market priceChange in market cap
Adani Enterprises₹1,523.2₹24,782 crore
Adani Green₹509.55₹4,268 crore
Adani Transmission₹675₹3,979 crore
Adani Total Gas₹703.05₹2,994 crore
Adani Power₹153.6₹2,963 crore
Adani Wilmar₹379.7₹2,469 crore
Adani Ports & SEZ₹601.25₹2,035 crore
Ambuja Cements₹348.3₹1,167 crore
ACC₹1,750.45₹353 crore
Total₹45,010 crore
Source: NSE, March 1, 2023

As a result, the combined market capitalization of the Adani group has decreased by more than 61%, or ₹13.46 lakh crore, since January 24.

Gautam Adani slips to 30th on the world’s richest list

Gautam Adani’s wealth has also been decimated by the rout in the Adani group stocks. He went from being the world’s third richest person on January 24 to the 30th richest on the Bloomberg Billionaires Index with a wealth of $39.9 billion.

During the past 36 days, Adani’s wealth has plummeted by $79.1 billion.

Over 70% decline in three Adani group stocks

Over 70% of the value of three group stocks has been lost since January 24, while the most resilient stocks are ACC and Adani Ports & SEZ.

CompanyTotal decline since January 24
Adani Total Gas-82%
Adani Transmission-76%
Adani Green-73%
Adani Enterprises-56%
Adani Power-44%
Adani Wilmar-34%
Ambuja Cements-30%
Adani Ports & SEZ-21%
Source: NSE, March 1, 2023

Comeback strategy

Adani Group has come up with a comeback strategy that involves repaying loans on or ahead of time in order to stem the stock market rout following the Hindenburg report.

On Monday, Adani Ports & SEZ announced that it had repaid a $1,500 loan and would repay 5,000 crores in FY24, as well as another $500 million bridge loan due in March.

As part of the move, the group has also withdrawn its follow-on public offer (FPO) of 20,000 crore for the acquisition of DB Power for 7,017 crore.

By delaying some projects, avoiding bidding for new ones, and selling some assets, Adani Green can repay debt worth rupees 22,000 crore by FY25.

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I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.


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