Adani Enterprises stock at 16-mth high; here's what aided the recent gains

Adani Enterprises stock update: The stock was up 2 per cent in Friday's intra-day deals after the company said its board will meet on 28 May to consider fund raise.

Shares of Adani Enterprises (AEL) hit a 16-month high of Rs 3,445, up nearly 2 per cent on the BSE in Friday’s intra-day trade after the company said its board will meet on Tuesday, May 28, to consider fund raising plan. The company made this announcement on Thursday after the market hours.

The stock of Gautam Adani-led group's flagship firm has rallied 10 per cent in past two days. In past 11 trading days, it has zoomed 25 per cent. Currently, the stock was quoting at its highest level since January 2023. It had hit a record high of Rs 4,189.55 on December 21, 2022.

In an exchange filing, AEL said a meeting of the board of directors of the company will be held on Tuesday, 28th May 2024 to consider and approve the proposal of raising of funds by way of issuance of equity shares or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods as may be permitted under applicable law.

AEL’s strategic business investments are centered around green hydrogen ecosystem, airport management, data center, roads and primary industries like copper and petrochem - all of which have significant scope for value unlocking, the company said.

AEL plans to spend Rs 80,000 crore across businesses in the current financial year. A bulk of the capital expenditure planned for 2024-25 (April 2024 to March 2025) fiscal will be on new energy businesses and airports, said Saurabh Shah, deputy chief financial officer, at an analyst call, transcript of which was released by the company.

Meanwhile, according to Business Standard report, AEL may replace Wipro in the benchmark Sensex index. “A formal announcement in this regard is expected on Friday as part of the semi-annual rebalancing exercise for BSE indices,” the newspaper report said.

This is the first time an Adani-group company will be added to the benchmark 30-share index. Estimates by IIFL Alternative Research suggest the addition of Adani Enterprises to the Sensex will result in inflows worth almost Rs 1,000 crore from passive funds tracking the index CLICK HERE FOR MORE