Adani Enterprises extends gain in a weak market; up 21% in 5 days

Adani Enterprises and French energy giant Total SA Wednesday announced a partnership to develop liquefied natural gas import terminals and fuel retailing network in India.

Shares of Adani Enterprises moved higher by 4% to Rs 167.80, extending its 17% surge in past four trading days in an otherwise weak market, after the company and French energy giant Total SA announced a partnership to develop liquefied natural gas (LNG) import terminals and fuel retailing network in India.

“Adani and Total have signed an agreement to jointly develop multi-energy offerings to the Indian energy market. The diversified portfolio includes LNG and fuel retail,” Adani Enterprises said in a press release on Wednesday after market hours.

The partnership has set a target of developing various regasification terminals including Dhamra LNG. The two will also set up a joint venture to roll out a fuel retail network of 1,500 outlets, mostly on highways, in the next 10 years, Adani and Total said in a joint statement.

The stock of Adani Enterprises had gone ex-gas business with effect from September 6, 2018, after the company had decided to hive off the businesses separately.

In January this year, the Adani Group decided to demerge its gas sourcing and distribution business into a new company called Adani Gas. Investors will get one share of Adani Gas for every share of Adani Enterprises, which will be listed on the BSE and National Stock Exchange of India Limited (NSE).

At 01:22 PM; Adani Enterprises was trading 3% higher at Rs 166.50 on back of heavy volumes. A combined 7.77 million equity shares changed hands on the counter on the NSE and BSE. In comparison, the S&P BSE Sensex was down 1.4% or 483 points at 34,297.