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.
|Company||Current market price||Change 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|
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.
|Company||Total decline since January 24|
|Adani Total Gas||-82%|
|Adani Ports & SEZ||-21%|
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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