Adani Shares Continue Rally; Adani Enterprises jumps 14%, 6 Group shares hit the ceiling

Shares in Adani Group companies continued to gain momentum on Monday as concerns over the conglomerate’s debt obligations eased after the Gautam Adani-led company raised 15,446 crore by selling minority stakes in four of its listed companies to the US-based Company GQG Partners had raised. Flagship Adani Enterprises, which extended the rally for the fifth straight day, was up nearly 14% in early trade, while Adani Green, Adani Power, Adani Transmission, Adani Total Gas, Adani Wilmar and NDTV were each up 5% .

On Monday, all 10 listed companies in the Adani Group opened in the green, in sync with the broader market, with six stocks making tops for the fourth session. Adani Ports & SEZ rose as much as 5.6%.

Within the Adani group, Adani Enterprises was the top performer with a share price increase of up to 13.6% in the first two hours of trading. The stock has rallied nearly 80% in just five sessions, from ₹1,193.50 on Feb. 27 to ₹2,135 intraday today.

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

In the last five trading sessions, the combined market cap of all 10 Adani shares jumped over 2 lakh crore to almost 9 lakh crore. Shares regained buying momentum after losing nearly 12 lakhcrore in market value in more than a month after US-based short seller Hindenburg Research issued a report on Jan. 24 laying out some serious allegations against the company . However, the Adani Group had refuted allegations in a detailed report.

The recent rally in Adani shares 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 were turning cautious, according to Hindenburg Research’s report. GQG’s investment was the first major capital injection into Adani since the Hindenburg report on the conglomerate.

On March 3, Australia-listed GQG Partners made investments worth ₹15,446 billion 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 sole agent for the transaction. GQG has 3.4% stake in Adani Enterprises for approximately £5,460m, 4.1% in Adani Ports for £5,282m, 2.5% in Adani Transmission for £1,898m and 3.5% stake in Adani Green Energy bought for £2,806 million.

Adani Group has nearly $2 billion in foreign currency bonds due for repayment in 2024. Adani Ports has $650 million due in 2024, while Adani Green Energy has $750 million in bonds million US dollars and 500 million US dollars in the next year.

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