As Adani Enterprises, Adani Green, Adani Ports shares rise, group m-cap nears Rs 10 lakh cr mark

From a sub-Rs 7 lakh crore to near Rs 10 lakh crore-mark, the combined market capitalisation (m-cap) of Adani group companies has recovered sharply, thanks to recent steps taken by the Gautam Adani-led group to allay investor concerns over debt that intensified following Hindenburg Research’s scathing report on January 24.

On a day when the US-based short seller said another ‘big’ report was coming, the Adani group commanded a m-cap of Rs 9,82,502.50 crore against a sub-Rs 7 lakh m-cap on February 27.

Yet the report has managed to keep group founder and Chairman Gautam Adani out of list of top 20 billionaires. The group’s m-cap is still down 48 per cent from January 24’s level of Rs 19,19,888 crore and requires group shares to double from here on to reach pre-Hindenburg levels. Adani is worth $58.9 billion as of last count. His personal wealth has also recovered sharply from a February 27 low of $37.7 billion but is down a whopping $61.7 billion in 2023 so far.

The group’s flagship Adani Enterprises has seen its shares surging 79 per cent from its 52-week low of Rs 1,017.10 hit on February 3. Adani Green Energy shares are up 123 per cent from a one-year low of Rs 439.35 hit on February 28. Adani Ports & SEZ is up 68 per cent from February 3 low of Rs 394.95. Adani Transmission jumped 72 per cent to Rs 1,084.25 from a low of Rs 630 on March 1. Adani Total Gas hit a one-year low of Rs 655 on the same day. This stock is up 50 per cent since then. Adani Wilmar shares have risen 31.03 per cent from a 52-week low of Rs 327. Adani Power shares are up 34.50 per cent in the last one month.

The Nathan Anderson-led Hindenburg Research triggered a selloff in Gautam Adani’s group shares, two months ago, after it made several allegations including stock manipulation and accounting frauds at Adani group companies. While the Adani group denied all allegations, the group’s market capitalisation took a beating.The Adani group later took many steps to cut debt and allay investor concerns.

It sold Rs 15,446 crore worth of shares in four of its companies and prepaid share-backed financing of Rs 7,374 crore ($901.16 million) to various international banks and Indian financial institutions. The group also held roadshows in Dubai, London, Hong Kong and Singapore, among others. Among other steps, the group cancelled a Rs 7,017 crore coal plant purchase and shelved plans to bid for a stake in power trader PTC India. It also went slow on a Rs 34,900 crore petrochemical project in Gujarat’s Mundra.

Earlier, the group completed the acquisition of Haifa Port in Israel for $1.2 billion. In December 2022, Adani Enterprises acquired NDTV founders’ 27.3 per cent stake in the media company. It also completed acquisition of Ambuja Cements and its subsidiary ACC from Switzerland’s Holcim group for $6.4 billion. The acquisitions raised concerns over the group’s debt later, especially after Hindenburg’s allegations.

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