New Delhi, Sep 11: The Adani Group, the port-to-power conglomerate, added a massive Rs 47,050 crore in shareholder’s wealth as investors showed renewed confidence in the group’s stock portfolio.
Adani Group’s market capitalisation shot up to INR 11.5 trillion on Monday, a seven-month high. On Friday’s close, the group’s market capitalisation stood at Rs 11.02 trillion.
The move has come after the promoters’ increased stakes in the two leading companies—the flagship incubator, Adani Enterprises Limited (AEL) and Adani Ports and Special Economic Zone (APSEZ).
This has been perceived by the market as the vote of confidence in the company’s future prospects. At the same time, it also means that the promoters’ interests are more aligned with the shareholders and is a sign of highest standards of governance, especially when the promoter holding are as high.
In AEL, the promoter's stake has been bolstered from 69.87 per cent to 71.93 per cent. Likewise, in APSEZ, the stake has risen from 63.06 per cent to 65.23 per cent. The promoter buying in the two companies is worth more than Rs 15,000 crore.
This amount also includes the share purchase done by the promoters last month in AEL. This is not only viewed as the group's commitment to its core businesses and long-term growth vision, but also as the strong financial situation at the promoter level.
As a result, all the 10 stocks in the Adani Portfolio showed strong gains led by Adani Power which gained 7.92 per cent over Friday’s close. Adani Ports and SEZ (6.96 per cent), NDTV (5.4 per cent), Adani Energy Solutions (5.03 per cent), and Adani Enterprises (3.8 per cent).
Market experts cite the Adani Group's recent strides in share price as a reflection of its successful confidence-building measures and renewed interest from global and domestic investors.
"The Adani Group's rebound is no mere coincidence. It's the outcome of a series of strategic decisions and transparency in their operations. Investors have had the time to dissect the developments and react positively to emerging indicators. The promoters have been continuously renewing investor confidence raising stakes and liquidity at the group level. Those who were previously apprehensive are now slowly coming back on due to the group’s resilience and adaptability.
“The group's unwavering focus on core infrastructure investments, complemented by consistent EBITDA growth, projects a clear trajectory of sustainable success.
“Moreover, with fundraising efforts being robust at the group level and impeccable project execution, the group has not only reinstated but also amplified investor trust in its operational direction going forward. The momentum we're witnessing now is just the tip of the iceberg, with more promising returns anticipated in the long haul," commented a senior analyst at a leading brokerage firm.
The other Adani Group stocks also clocked decent gains among them were Adani Wilmar (2.59per cent), Adani Green Energy Solutions (1.34per cent), Ambuja Cements (2.66 per cent), and ACC (1.32 per cent).
The Adani Group’s confidence building measures have been further bolstered by investments from GQG Partners which invested over $4 billion in several group companies since March. Investment of $500 million by QIA, one of the world’s largest sovereign funds has also been taken positively by the markets.
Adani has also been continuing to make investments tying up with global majors to bolster its investments in the energy and utilities space. The Group recently announced a joint venture agreement with Kowa Holdings Asia, also headquartered in Singapore.
The 50-50 partnership aims to bolster the sales and marketing of green ammonia, green hydrogen, and other related products produced and provided by the Adani Group.