Adani Enterprises hits fresh record high, surges 11% in 2 days

The firm surpassed its previous high of Rs 1,335, touched in January 2008, before the restructuring of its businesses

Adani Enterprises shares rose 3 per cent, on Wednesday, and hit a new high of Rs 1,461.45 in intra-day trade on the BSE, thus surging 11 per cent in the past two trading days. The flagship company of the Gautam Adani led-Adani Group company has now surpassed its previous high of Rs 1,335, touched in January 2008, before the restructuring of its businesses.

Currently, Adani Enterprises (AEL), on a standalone basis, has mainly integrated resources management (IRM) / coal trading, power trading and mining services businesses. AEL, on a consolidated basis has diversified businesses which include solar cell and module manufacturing, agro-processing (including sale of branded edible oil), commodities trading, bunkering (fueling) of ships and shipping. AEL, through its subsidiaries, has invested significant funds in coal mining and related rail evacuation infrastructure in Australia and is currently incubating new businesses like airports, road development, water treatment plant, data centers etc.

In order to enable distinct focus of investors to invest in some of the key businesses and to lend greater/enhanced focus to the operation of the said businesses, in 2015, Adani Enterprises, the holding company of the Adani group, had restructured its businesses.

The port business of Adani Enterprises folded into Adani Ports Special Economic Zone Ltd (APSEZ) and its power business merged with Adani Power as part of the restructuring. The company demerged the transmission undertaking in Adani Transmission. In 2018, Adani Enterprises had demerged its renewable energy business into associate company Adani Green Energy and demerged gas sourcing and distribution business to Adani Gas as part of simplifying overall business structure.

Besides AEL (Rs 1.6 trillion) market capitalisation (market cap), currently, the four other listed Adani Group companies, Adani Green Energy (Rs 2.03 trillion), Adani Transmission (Rs 1.7 trillion), Adani Ports and Special Economic Zone (Rs 1.7 trillion) and Adani Total Gas (Rs 1.6 trillion) have market cap of more than Rs 1.5 trillion, each. Adani Power, the other group company, has market-cap of Rs 37,354 crore.