Adani Enterprises share price hits over 4-month low; down 9% in 1 week

Shares of Adani Enterprises were down 3% to Rs 2,837.70 in Tuesday's intra-day trade, falling below its QIP issue price of Rs 2,962 per share

Adani Enterprises share price: Shares of Adani Enterprises (AEL) hit over four-month low of Rs 2,837.70, down 3 per cent on the BSE in Tuesday’s intra-day trade, extending its past four days fall after closure of qualified institutional placement (QIP) issue. 

The stock of the flagship company of Adani group is trading at its lowest level since June 5, 2024. In comparison, the BSE Sensex was down 0.56 per cent at 80,698, at 12:47 PM.

In the last one week, Adani Enterprises underperformed the market by falling 9 per cent, as compared to the 1.3 per cent decline in the benchmark index. Shares of AEL are trading 4 per cent below its QIP issue price of Rs 2,962 per share.

On October 15, 2024, the company’s board approved the allotment of 14.18 million equity shares of face value Rs 1 each to eligible qualified institutional buyers at the issue price of Rs 2,962 per equity share (including a premium of Rs 2,961 per equity share) and reflecting a discount of Rs 155.4750 (i.e. 4.99 per cent) on the floor price of Rs 3,117.4750 per equity share. 

The company raised approximately Rs 4,200 crore through QIP. The Issue opened on October 9, 2024, and closed on October 15, 2024. The proceeds from the QIP will be utilised for funding capital expenditure, debt repayment and general corporate purposes.

According to disclosure made by AEL, nearly half or 46.97 per cent of total QIP issue size has been allotted to Quant Mutual Fund’s various schemes (6.66 million equity shares). Winro Commercial (India) allotted 1.77 million equity shares, followed by Tree Line Asia Master Fund (Singapore) Pte Ltd (843,305 equity shares) and SBI Life Insurance Company (717,420 equity shares).

AEL's current incubation portfolio includes airports and roads in the transport and logistics sector, new energy ecosystem (including solar and wind manufacturing) and data centres in the energy and utility sector. AEL's other businesses including copper, PVC, defence and specialised manufacturing, focus on import substitution and addresses India's vision of Atmanirbhar Bharat.