Adani group stocks jump by Rs 15,000 cr

Adani group stocks jump by Rs 15,000 cr

New Delhi, Nov 24 (PTI) Stock prices of Adani group companies soared by almost Rs 15,000 crore as the Supreme Court on Friday heard and reserved its verdict on a batch of petitions seeking examination of allegations of fraud against the conglomerate.

Nine of the 10 listed group companies ended in the green, adding Rs 14,786 crore in group market capitalisation, stock exchange data showed.

The overall market capitalisation of the 10 Adani Group companies stood around Rs 10.26 lakh crore at the close of trading on Friday as against Rs 10.11 lakh crore on the previous day.

During the hearing on Friday, the bench of Chief Justice of India D Y Chandrachud with Justices J B Pardiwala and Manoj Misra said the Securities Exchange Board of India (Sebi) cannot be expected to follow what newspaper reports have in order to decide about Adani's alleged conduct.

Sebi also stated that it would not extend the deadline to complete its ongoing investigation, a statement which the markets saw one that would bring closure to the allegations levelled by the US short seller Hindenburg Research in a damning report in January.

Analysts said the rise in stock prices was a sign of investors reposing faith in the group, which is hoping to put behind the Hindenburg row and focus on the investment cycle.

'The event marks a significant moment of transition for the group's stocks as it will see a return to stability and as the market will focus on continuing investments in green energy and other infrastructure and restore investor confidence,' said a head of research at a domestic brokerage house.

This, he said, was a clear shift in sentiment suggesting that investors are ready to leave behind the Hindenburg saga and look at the Group's strategic initiatives and its continued investments and expansions in the energy and utility space.

'The market is re-evaluating the group's value proposition. The recent developments and the group's focus on executing its business plans are convincing the investors that the future holds a strong growth trajectory, dispelling the shadows cast by the allegations,' he said.

Of the 10 stocks in the Adani stable, nine were in the green. Adani Enterprises, the group's flagship firm, jumped 2.3 per cent, driving its market capitalisation to Rs 2.53 lakh crore.

Other notable gainers include Adani Power, which gained 4.06 per cent seeing its market cap swell to Rs 1.5 lakh crore.

Adani Total Gas (1.2 per cent), Adani Energy Solutions (0.84 per cent), and Adani Green Energy (0.77 per cent) were among the other gainers.

Ambuja Cement was the only stock that ended in the red, down 0.31 per cent.

Over the past few months, The Adani Group has taken several measures to reduce the group's leverage. The group continues to raise funds from global investors for investments in green energy and other initiatives.

Adani Group's financial performance of its listed portfolio in the second quarter also showed a strong growth. The group is eyeing an EBITDA of Rs 90,000 crore in the next 2-3 years. PTI ANZ TRB

Disclaimer: This story is auto-generated feed.

Related Stories

No stories found.
logo
PSU Watch
psuwatch.com