Adani shares jump, adds Rs 50,501 cr in market capitalisation in 1 day

Billionaire Gautam Adani's ports to power conglomerate added over Rs 50,501 crore in market capitalisation in a single day on Tuesday as shares of all the 10 listed group companies surged on renewed interest from domestic investors. 

The overall market capitalisation of the 10 Adani Group companies stood at over Rs 10.6 lakh crore at the end of trading on Tuesday on the BSE, up Rs 10,501.26 crore over an m-cap of around Rs 10.1 lakh crore on the previous year, stock exchange data showed.

Market experts attribute the reasons for the rise in stock prices to an increase in interest from domestic investors.

"Definitely, there is significant interest from investors like retail, HNIs and family offices. Also, the market is catching up with the fundamentals of the Adani Group companies. The Hindenburg issue has taken a backseat and the market is judging the group by its financial performance," said a head of research of a domestic brokerage house.

Notable performers were renewable energy arm Adani Green Energy Ltd (AGEL), city gas distributor Adani Total Gas Ltd (ATGL), and news broadcaster NDTV, all of which hit the upper circuit limits.

Leading the charge, AGEL registered a significant 10 per cent gain, with Adani Power not far behind, clocking a 9.3 per cent increase.

Adani Enterprises, the group's flagship firm, saw a gain of 2 per cent, boosting its market capitalisation to Rs 2.81 lakh crore. Adani Transmission, riding high on a nearly 8 per cent gain to its previous close, saw its current market price reach Rs 834.80, which in turn propelled its market cap to Rs 93,121 crore on the BSE.

Shares of Adani Wilmar rose by 4.57 per cent, driving its current market price to Rs 416.65, thereby increasing its market capitalisation to Rs 54,151 crore. ATGL witnessed a 5 per cent gain, elevating its market cap to Rs 72,856 crore.

Adani Ports and its shares followed suit, rising by 1.90 per cent to Rs 749.35, and raising the market cap to Rs 1,61,870 crore.

Adani's cement sector stocks, Ambuja Cements, also saw a healthy growth of 4.10 per cent, lifting its market cap to Rs 87,418 crore. The ACC shares climbed 4.83 per cent, increasing the market cap to Rs 35,528 crore.

The news broadcaster NDTV hit the upper circuit limit, closing at Rs 238.75, marking a gain of 4.99 per cent.

The recent surge in Adani Group's market value reflects the various investor confidence-building measures implemented by the conglomerate in the wake of the Hindenburg report, which has resulted in the group's market value recovering to over Rs 10.6 lakh crore from its post-Hindenburg lows of Rs 6.5 lakh crore.

US short-seller Hindenburg Research in January released a damning report alleging accounting fraud and stock price manipulation at Adani Group, triggering a stock market rout that had erased about USD 145 billion in the conglomerate's market value at its lowest point.

Adani Group has denied all allegations by Hindenburg and is plotting a comeback strategy that includes recasting its ambitions, scrapping acquisitions, pre-paying debt to address concerns about its cash flows and borrowings, and scaling back its pace of spending on new projects. 

US-based investment firm GQG Partners invested in Adani Group companies in three tranches over the last five months. GQG had initially invested USD 1.87 billion in four group companies in March and followed by open market purchases of about USD 500 million in May. GQG bought another USD 1 billion worth of stocks in several Adani Group companies in late June.

These strategic investments by GQG Partners align with the Adani family's strategy to reassure investors of their commitment to growth and exemplify GQG's confidence in the group's robust business model, despite the past Hindenburg crisis.

Adani Group's financial performance of its listed portfolio also showed strong growth year-on-year with an EBITDA growth of 36 per cent to Rs 57,219 crore in FY23 despite the Hindenburg crisis.