Adani Group stocks surge, adding Rs 27,000 cr to investor wealth: Report
New Delhi: Adani Group stocks witnessed a substantial rise, contributing nearly Rs 27,000 crore to investors' wealth as most shares gained in morning trade, media reports said.
At 11:03 am, the market capitalisation of Adani Group companies increased by Rs 26,894.46 crore, reaching Rs 13.55 lakh crore, reported NDTV.
The group’s stocks surged by 9 percent, with Adani Green Energy Ltd and Adani Power Ltd leading the gains.
Adani Green Energy shares jumped 7.38 percent to Rs 1,232.80 apiece, marking their highest level since December 9, while Adani Power shares rose by 5.11 percent to Rs 545.80 apiece, the highest since December 6.
The surge comes amid reports of the Adani Group entering preliminary discussions to refinance loans worth $1.1 billion.
A report by Nomura highlighted that Adani Group stocks are among the most attractive in the Indian market, citing improved liquidity management and the conglomerate's ability to withstand recent legal challenges involving the US Department of Justice.
The Adani Group has been treading turbulent waters following the release of a report by Hindenburg Research in January 2023.
The report accused the conglomerate of financial irregularities, including stock price manipulation and governance lapses, leading to a sharp decline in the stock prices of its listed companies.
Some stocks, such as Adani Total Gas, experienced a dramatic drop of over 80%, while others like Adani Green Energy and Adani Power saw declines ranging from 50% to 75%. The group's market capitalisation suffered a major hit, wiping out billions in investor wealth.
However, Adani Group managed to recover, taking measures to reassure stakeholders, such as prepaying loans to improve liquidity, enhancing corporate governance practices, and emphasising operational resilience. By mid-2024, signs of recovery began to emerge.
Key stocks, including Adani Green Energy and Adani Ports, regained pre-Hindenburg levels, while others showed partial recovery. Analysts highlighted the group's improved financial management, helping it weather the turmoil and rebuild investor confidence.
However, this wasn’t the end of troubles for the Gautam Adani-led ports-to-cement conglomerate. It faced two more controversies that further exacerbated its challenges.
First, Hindenburg made another allegation, accusing the National Stock Exchange's (NSE) former Chairperson, Madhavi Puri Buch, of having links with the Adani Group. This claim suggested possible collusion to manipulate the stock market, although it was quickly denied by both parties. The allegation sparked further scrutiny of the group’s operations and raised questions about governance at the NSE.
Recently, a US court indicted Adani Group Chairman Gautam Adani along with seven others, for allegedly paying bribes amounting to Rs 2,029 crore ($265 million) to Indian officials to secure solar power contracts across four states and a union territory.
This development intensified the ongoing pressure on the conglomerate, though Adani officials have denied any wrongdoing.
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