ADVERTISEMENT
Shares of Adani Energy Solutions gained nearly 3% in early trade on Wednesday after MSCI announced that it would consider inclusion of the company in their global standard indexes in its February review to be implemented on February 28, 2025. Boosted by the development, the energy arm of Adani group ended two days losing streak after sliding 5.5% in the previous two sessions amid weakness in the broader market.
Early today, Adani Energy Solutions shares opened a tad higher at ₹733.05 against the previous closing price of ₹732.20 on the BSE. Extending opening gains, the Adani group stock gained as much as 2.6% to hit a high of ₹751.05, while the market capitalisation rose to ₹89,460 crore. The energy heavyweight has lost 31% in market value in the last one year; 30% in six months; and 8% in the calendar year 2025. The stock, however, rebounded 8% in the past one month. The counter touched its 52-week high of ₹1,347.90 on August 1, 2024, and a 52-week low of ₹588.25 on November 27, 2024.
On Tuesday, MSCI, the investment research firm that provides globally tracked stock indexes, clarified that starting from the February 2025 index review, it will implement changes such as the number of shares (NOS), foreign inclusion factor (FIF) and domestic inclusion factor (DIF) of Adani Energy Solutions which were previously postponed.
At the end of December quarter of 2024, promoters held 69.94% stake in the company, while FIIs stake stood at 17.34%. Mutual Funds holding were at 1.91% in Dec 2024 quarter, whereas institutional investors’ shareholdings stood at 23.19%.
“MSCI clarifies that starting from the February 2025 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Energy Solutions that have been previously postponed,” it notified on February 11, 2025.
“The proforma changes are announced along with the February 2025 Index Review announcement. The changes will be implemented as of the close of February 28, 2025 (effective March 3, 2025),” read the notification.
MSCI further said that it will continue to monitor Adani Group and associated securities, including related to free float, and will issue further communication if appropriate.
For the third quarter ended December 31, 2024, Adani Energy Solutions reported profit after tax of ₹625 crore, up 80% Year-on-Year (YoY) from ₹348 crore in Q3 FY24, driven by a strong EBITDA growth and boosted by reversal of net deferred tax liability of ₹185 crore mainly due to divestment of Dahanu plant in Adani Electricity Mumbai Limited (AEML).
Total income rose 24% YoY to ₹6,000 crore on account of the contribution of the newly operationalised transmission assets, increase in energy sales due to consistent demand growth in distribution business at Mumbai and Mundra, and growing contribution from smart metering business. On the operating front, EBITDA increased by 6% YoY to ₹1,831 crore.
During the December quarter of FY25, the company secured two new transmission projects - Khavda Phase IV Part-D and Rajasthan Phase III Part I (Bhadla – Fatehpur HVDC), thereby adding 3,044 ckm to under construction network. With five new project wins so far this year, the under-construction transmission pipeline has jumped significantly to ₹54,761 crore in Q3 FY25 from ₹17,000 crore in the year ago period.
Adding to it, Adani Energy Solutions won its largest order till date by bagging ₹25,000 crore Bhadla-Fatehpur HVDC Project through the competitive route last month. The project will help evacuate 6GW of renewable energy and will aid India’s decarbonisation march.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
Fortune India is now on WhatsApp! Get the latest updates from the world of business and economy delivered straight to your phone. Subscribe now.