Adani Hikes Stake In Two Group Companies, Shares Rally

Shares of Adani group companies, Adani Enterprises Ltd and Adani Ports will remain in focus on Monday as promoters of Adani Enterprises have further hiked their stake in the company by 2.06% between August 21 and September 7 and now promoters own 71.93% stake in the company. Meanwhile, promoters of Adani Ports have also raised their stake by nearly 2.17% in the company between August 14 and September 8 thus raising their total holding to 65.23%.

Current market price of Adani Enterprises Ltd share is Rs 2570.85 per share with intraday rally of 2.01% till 9:19 am. The company has a market capitalisation of Rs 2,93,077.19 crore.

Shares of Adani Ports And Special Economic Zone gained 1.98% in morning trade. Current market price of Adani Ports share is Rs 841.45 per share. Its market capitalisation is Rs 1,81,516.48 crore.

It is worth mentioning that this the second time in less than a month that the promoters have decided to increase their stake in the flagship firm that incubates new businesses. The promoters had last month increased stake in Adani Enterprises Ltd from 67.65% to 69.87%.

Resurgent Trade and Investment Ltd bought approximately 1% stake in Adani Ports and Special Economic Zone Ltd in open market transactions and another 1.2% was purchased by Emerging Market Investment DMCC. Both are promoter group firms.

Kempas Trade and Investment Ltd and Infinite Trade and Investment Ltd bought shares in Adani Enterprises Ltd.

According to the regulatory filing, the stakes were bought in open market transactions between August 14 and September 8.

The stake increase comes within weeks of the US-based boutique investment firm GQG Partners buying shares in Adani group firms, according to the PTI report.

GQG has increased its stake in Adani Ports & Special Economic Zone (APSEZ) to 5.03% last month by way of a bulk deal, as per the regulatory filing.

GQG now has a stake in five of the 10 Adani Group firms.

On August 16, it bought a 7.73% stake in Adani Power Ltd. Promoter group firms Worldwide Emerging Market Holding and Afro ASIA Trade And Investments sold an 8.09% stake in Adani Power through block deals on August 16, according to a PTI report.

Of this, GQG bought 7.73%, filings showed.

After the stake sale, promoter holding in Adani Power declined to 66.88% from 74.97%.

Earlier this year on January 24, US short-seller Hindenburg Research issued a report claiming accounting fraud, stock price manipulation and inappropriate use of tax havens at the Adani group, causing a stock market rout that wiped out approximately USD 150 billion in the market value at its lowest point.

However, Adani Group called the Hindenburg report baseless and currently working on a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings, and scaling back its pace of spending on new projects, among others.