Adani Group companies continued their uptrend on Monday with all 10 listed entities ending in the green zone, in sync with the broader market. The combined market capitalisation of the Adani Group stocks crossed the crucial ₹11 lakh crore mark to ₹11.29 lakh crore, hitting six months high. The recent rally in Adani group stocks can be attributed to investments by Rajiv Jain-led GQG Partners and bulk deal buzz in billionaire Gautam Adani-led companies.
The biggest gainer among the Adani Group stocks was Adani Power, which ended 6.7% higher at ₹325.05 on the BSE. This was followed by Adani Energy Solutions with a 5.9% gain, while flagship Adani Enterprises, Adani Green, Adani Ports and Special Economic Zone (APSEZ), ACC, and Ambuja Cements gained in the range of 2% to 2.7%. Adani Total Gas and NDTV gained 1.5% each, whereas Adani Wilmar settled flat with positive bias.
Meanwhile, the BSE Sensex settled 267 points, or 0.41%, higher at 65,216 levels, snapping two sessions losing streak. In a similar trend, the NSE Nifty closed at 19,394, up by 83.45 points, or 0.43%.
Adani Power shares gain 16% in 3 sessions
Among individual stocks, Adani Power extended rally for the third straight session and gained 16% during the same period. Investors turned bullish on Adani Power after the U.S.-based investment fund GQG Partners picked up 8.1% stake in the power arm of the port-to-energy conglomerate. In the largest ever single equity deal in the Indian stock market, Rajiv Jain-led investment firm purchased 31.2 crore equity shares of Adani Power for more than ₹9,000 crore ($1.1 billion) in a series of block deals on August 16.
According to BSE data, Adani group promoters — Mauritius-based Worldwide Emerging Market Holding and Afro Asia Trade and Investments sold stakes worth ₹9,000 crore in a series of open market transactions on August 16, which was brought by GQG. The shares were sold at an average rate of ₹279.17.
Early today, Adani Power shares opened marginally higher at ₹306.05 against the previous closing price of ₹304.65 on the BSE. During the session, the power stock gained as much as 7.6% to ₹328, before settling at ₹325.05, up 6.7%. The market capitalisation rose to ₹1.25 lakh crore at the end of today’s trade.
The share price of Adani Power touched a 52-week high of ₹432.80 on August 22, 2022, while it hit a 52-week low of ₹132.55 on February 28, 2023, amid broad-based sell-off across Adani group stocks following the release of a report by U.S. short seller Hindenburg Research.
Meanwhile, Rajiv Jain-led GQG Partners has also increased its stake in the port and logistics arm of Adani Group, APSEZ. The U.S.-based boutique investment firm bought 22.56 lakh additional shares of the company through bulk deal on August 17, 2023, raising its stake in APSEZ from 4.93% to 5.03%, as per the exchange data. Boosted by the development, shares of Adani Ports ended 2.67% higher at ₹858.20 on the BSE today.
GQG currently owns stakes in five of the 10 Adani Group firms -- Adani Enterprises, Adani Ports, Adani Green Energy, Adani Transmission, renamed as Adani Energy Solutions, and Adani Power. GQG has been continuously investing in Adani Group companies since Hindenburg Research’s critical report on the conglomerate came out on January 24, 2023. The report triggered sell-off in group shares resulting in a huge market loss for most of the listed entities. In March this year, the firm acquired minority stakes in four of the listed Adani Group companies - AEL, APSEZ, AGEL, and ATL. In June, this was followed by additional stake buying in the group’s flagship Adani Enterprises and renewable energy firm Adani Green Energy by 1.6% and 2.2%, respectively.
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