Adani Enterprises shares climb 2.2% as promoters up stake in flagship firm

Shares of Adani Enterprises went up by 2.24 per cent to Rs 2,697 a piece on Tuesday as the group’s promoter entities acquired shares worth Rs 6,347 crore in the last few days from the market. The total market valuation of the company was up to Rs 3.07 trillion on Tuesday.

The acquisition of 2.22 per cent stake by the promoters was within months of the promoters' selling their stake worth Rs 9,655 crore in Adani Enterprises, the group flagship company, in March and June this year to Australia listed investment firm GQG Partners. In March, the Adani family had first sold shares at Rs 1,411 a share while on June 28th, the shares were sold at Rs 2,331 a share. The shares have recovered since March this year even as the promoters used the proceeds to repay their debt. 

This is the first transaction after the Hindenburg Research report in January that the family has increased its stake by 2.22 per cent in the company. “The shares of Adani group companies have recovered since the Hindenburg report and the latest stake buy by the promoters is a confidence building measure,” said an analyst. The company has recently taken a delegation of bond investors to its Mundra site to showcase the work done by the company and instil confidence among the investors.

Last week, the promoters had sold 8.1 per cent stake worth Rs 9,000 crore in Adani Power, an electricity generator, to GQG Partners. The churn in the family’s portfolio comes amid plans to complete the prestigious  infrastructure projects like Navi Mumbai airport and Ganga expressway before the deadline. Both projects are over Rs 20,000 crore each.

Soon after the June quarter results, Adani group chairman, Gautam Adani said the results are a validation of the Adani Group's robust operational and financial achievements. “These outcomes, led by our incubating business of Adani Airports, Adani New Industries, Data Center and Adani Roads, not only underscore our history of creating and nurturing new and vital infrastructure businesses but also emphasise the future value and growth potential of the diverse Adani portfolio,” he said.

Adani also cited the company’s expertise in executing large-scale projects, like Kutch Copper, Navi Mumbai Airport, certification of India’s first 5 MW onshore wind turbine, and world-class O&M capabilities as fundamental drivers that have accelerated its infrastructure journey.