Adani Group shares jump by Rs 15,000 crore
New Delhi: Share prices of Adani group companies soared by nearly Rs 15,000 crore as the Supreme Court on Friday heard petitions seeking a probe into fraud allegations against the group and reserved its verdict.
Nine out of 10 listed group companies ended in the green, adding Rs 14,786 crore to the group market capitalisation, stock exchange data showed. The total market capitalization of 10 Adani Group companies was around Rs 10.26 lakh crore at the close of trading on Friday, up from Rs 10.11 lakh crore the previous day.
During the hearing on Friday, a bench of Chief Justice of India DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra said that the Securities Exchange Board of India (SEBI) cannot be expected to take any action regarding Adani’s alleged conduct. Will follow newspaper reports to take decision.
Sebi also said it would not extend the deadline to complete its ongoing investigation, a statement that markets saw as it would fend off allegations made by US short seller Hindenburg Research in a damning report in January.
Analysts said the rise in stock prices was a sign of confidence in the group by investors, which is hoping to put the Hindenburg controversy behind it and focus on the investment cycle. “The event is a significant moment of transformation for the group’s shares as it will mark a return to stability and the market will focus on continuing investment in green energy and other infrastructure and restoring investor confidence,” said a head of research. ”A domestic brokerage house. This, he said, is a clear shift in sentiment that shows investors are ready to leave the Hindenburg saga behind and look at the group’s strategic initiatives and its continued investment and expansion in the energy and utilities sector.
“The market is reevaluating the group’s value proposition. “Recent developments and the group’s focus on executing its business plans are reassuring investors that there will be a strong growth trajectory in the future, thereby dispelling the shadow of the allegations,” he said.
Nine out of 10 Adani shares were in the green. Group flagship Adani Enterprises jumped 2.3 per cent, taking its market capitalization to Rs 2.53 lakh crore. Other notable gainers include Adani Power, which gained 4.06 per cent and took its market capitalization to Rs 1.5 lakh crore.
Adani Total Gas (1.2 percent), Adani Energy Solutions (0.84 percent), and Adani Green Energy (0.77 percent) were among the other gainers. Ambuja Cement was the only stock to end in the red, down 0.31 per cent.
Over the past few months, Adani Group has taken several measures to reduce the group’s leverage. The group continues to raise funds from global investors to invest in green energy and other initiatives. The second quarter also saw strong growth in the financial performance of Adani Group’s listed portfolio. The group is eyeing Rs 90,000 crore EBITDA in the next 2-3 years.
