Shares of Adani Enterprises continued gaining streak for the second day and rallied as much as 15% in intraday trade on Wednesday after the Adani Group flagship company secured the Kutrumali bauxite deposit in Odisha. The stock has surged over 31% in the last two sessions amid a report that Gautam Adani-led conglomerate is planning to prepay or repay share-backed loans up to $790 million by March-end.
On Wednesday, Adani Enterprises share price opened 3.9% higher at ₹1,418 against the previous closing price of ₹1,364.05 on the BSE. During the session so far, the counter jumped as much as 14.9% to hit an intraday high of ₹1,567, while the market capitalisation climbed to ₹1.74 lakh crore. The stock currently trades 54% higher than its 52-week low of ₹1,017.10 touched on February 3, 2023, while it is down 63% from its 52-week high of ₹4,189.55 on December 21, 2022.
The stock price got a boost after Adani Enterprises, in an exchange filing, said it has received a letter of intent for Kutrumali bauxite block in Odisha. Mundra Aluminium Ltd(MAL), a wholly owned subsidiary of the company, has been declared as “preferred bidder” and received letter of intent for the mineral block in Odisha.
“MAL recently participated in the auction proceedings invited by the Government of Odisha. We are pleased to inform that based on the outcome of the auction proceedings, MAL has been declared as “Preferred Bidder” and subsequently a Letter of Intent (“LOI”) dated 27th February 2023 has been issued by the Government of Odisha in respect of the following mineral block in Odisha,” the conglomerate said in a BSE filing on Tuesday.
MAL has been incorporated with an objective of carrying out the business of mining, refining, smelting, development, production and operations of bauxite, alumina, and aluminium.
Shares of Adani Enterprises, along with other listed group entities, have been consistently under pressure since January 24 after the U.S.-based Hindenburg Research accused Gautam Adani-led conglomerate of stock manipulation, resulting in a loss of around ₹12 lakh crore in cumulative market value. The group entities -- Adani Total Gas and Adani Transmission – have been top laggards and lost around 80% of their market capitalisation since January 24, while Adani Enterprises lost 54% in market value during the same period.
On Wednesday, Adani Group stocks continued upward movement for the second day, with all nine listed entities floating in positive terrain amid easing concerns about the conglomerate’s debt levels and repayment capabilities. The port-to-power group has repaid more than ₹12,000 crore over the last few days, which includes ₹9,500 crore to bondholders, ₹1,000 crore to SBI Mutual Fund, and ₹500 crore to Aditya Birla Sun Life Mutual Fund against commercial papers that matured last week. Besides, the group plans to repay another ₹1,200-1,400 crore to SBI MF against commercial papers maturing in March.
At 2:15 pm, Adani Enterprises was up 13.5%, followed by Adani Green Energy, Adani Power, and Adani Wilmar, Adani Transmission, which were locked in their 5% upper circuit limit. The newly acquired cement entities Ambuja Cement and ACC were up 2.4% and 1.5%, respectively. Among others, Adani Ports & SEZ and Adani Total Gas gained between 1.5-3%.