Dalal Street continued to see demand for Adani Group shares today, with Adani Enterprises leading the pack with a 10% increase following Gautam Adani's announcement of a deal worth Rs 15,446 crore with GQG Partners in the US.
Shares of Adani Enterprises were locked in 10% upper circuit limit at Rs 1,767.35.
Adani group's stocks
Stocks of 6 other group companies - Adani Transmission, Adani Green Energy, Adani Total Gas, Adani Wilmar, Adani Power and NDTV - were locked in their 5% upper circuit brackets. The conglomerate's cash cow Adani Ports was trading 7% higher at Rs 669.
Adani Enterprises shares at 1:20 p.m | Image: Wikipedia
The remaining stocks in the 10-pack Adani Group were also trading in the green zone. Today marked the fourth day in a row that Adani stock has increased. Following two trading days in which the Adani companies' market value increased by a combined Rs 74,000 crore, it increased by another Rs 30,000 crore on Thursday, as per a report by the Economic Times.
SB Adani Family Trust
Adani Group promoter company SB Adani Family Trust sold holdings in Adani Ports and Special Economic Zone, Adani Green Energy, Adani Transmission, and Adani Enterprises as part of the agreement with the US-based FII GQG Partners.
GQG invested Rs 5,460 crore in Adani Enterprises as shares were purchased for Rs 1,410.86 each. For Rs 596.20 a share, APSEZ stock was purchased for Rs 5,282 crore.
Adani Transmission's deal
Adani Transmission's deal, worth Rs 1,898 crore, was completed at a price of Rs 668.4 per share. At a cost of Rs 504.6 per share, the deal including Adani Green Energy had a value of around Rs 2,806 crore.
"We value GQG’s role as a strategic investor in our infrastructure and utility portfolio of sustainable energy, logistics and energy transition. This transaction marks the continued confidence of global investors in the governance, management practices and the growth of Adani's portfolio of companies," said Adani Group CFO Jugeshinder Singh.
But, investors in GQG were not pleased with the agreement with Adani Group. Australian-listed shares of the company decreased by as much as 3% today. GQG shares were down 2.6% at mid-afternoon, while the S&P/ASX200 benchmark index was up 0.42%.
Notwithstanding this week's recovery, the market value of Adani equities has decreased by Rs 10 lakh crore, or 57%, since the publication of the Hindenburg report in late January.
In addition to having an impact on Adani stock, the Hindenburg scandal has spread to bank and even state-owned LIC stock.
Supreme Court to look into the matter
The Supreme Court has established a committee to look into the matter in response to a number of PILs regarding the loss of investor capital following a collapse in Adani stock prices. It also commanded SEBI to wrap up its ongoing inquiry in the following two months.
The six-member expert group, which includes KV Kamath and Nandan Nilekani from India Inc., is also being asked by the supreme court to look into any regulatory failures in regard to the alleged violation of securities laws by the Adani Group or other businesses.
SEBI has been urged to investigate any stock price manipulation that may have violated the law.
Law firm Naik Naik & Co said order does not affect or usurp the functioning of SEBI but is complementary in nature. "The observations made and conclusions drawn by the committee will certainly be of considerable value in strengthening the extant securities laws, bolstering investor confidence, and affording investor protection," said Ameet Naik, Founder and Managing Partner, Naik Naik & Co.
The court judgement has been welcomed by billionaire Gautam Adani, who claims it will bring conclusion in a timely manner.
