Adani shares extend rally; Adani Enterprises jumps 14%, 6 group stock hit the roof

Shares of Adani group companies continued gaining momentum on Monday amid easing concerns about the conglomerate’s debt obligations after Gautam Adani-led entity raised ₹15,446 crore by selling minority stakes in four of its listed firms to U.S.-based GQG Partners. Extending rally for the fifth straight session, flagship company Adani Enterprises rallied nearly 14% in early trade, while Adani Green, Adani Power, Adani Transmission, Adani Total Gas, Adani Wilmar, and NDTV hit 5% upper circuit each. 

On Monday, all 10 listed Adani group companies opened in the green, in sync with the broader market, with six stocks hitting their upper circuit for the fourth session. Adani Ports & SEZ climbed as much as 5.6%.

Within the Adani group, Adani Enterprises was the top performer with share price surging as much as 13.6% in the first two hours of trade so far. The stock has rebounded nearly 80% in just five sessions, from ₹1,193.50 on February 27, to ₹2,135 intraday today.

Bucking the trend, the newly acquired cement entities ACC and Ambuja Cements fell nearly 2%, paring opening losses.

In the last five trading sessions, the combined market capitalisation of all 10 Adani stocks jumped over ₹2 lakh crore to nearly ₹9 lakh crore. The stocks regained buying momentum after losing nearly ₹12 lakh crore in market value in more than a month after the U.S.-based short seller Hindenburg Research released a report on January 24, making some serious allegations against the company. However, the Adani group had refuted allegations in a detailed report.

The recent rally in Adani stocks can be attributed to the investment by Rajiv Jain-led boutique investment firm GQG Partners Inc, which came at a time when foreign investors and institutions have turned cautious after Hindenburg Research’s report. The investment by GQG was the first major capital infusion in Adani since the Hindenburg report on the conglomerate.

On March 3, Australia-listed GQG Partners made investments worth ₹15,446 crore in four Adani group companies — Adani Ports and SEZ, Adani Green Energy, Adani Transmission and Adani Enterprises — through secondary market transactions. Jefferies India Private Limited acted as a sole broker for the transaction. GQG has bought 3.4% stake in Adani Enterprises for about ₹5,460 crore, 4.1% in Adani Ports for ₹5,282 crore, 2.5% in Adani Transmission for ₹1,898 crore, and a 3.5% shares in Adani Green Energy for ₹2,806 crore.

The Adani group has almost $2 billion worth of foreign-currency bonds due for repayment in 2024. The conglomerate borrowed over $10 billion in foreign currency bonds between July 2015 and 2022, of which $1.15 billion of bonds matured in 2020 and 2022. The bonds worth $650 million of Adani Ports are due for payment in 2024, while $750 million and $500 million bonds of Adani Green Energy will mature next year.