Adani Enterprises gains 5%, hits new high; market-cap nears Rs 2-trn mark

Adani Enterprises, the flagship entity of the Adani group, is set to join the elite group of companies having market capitalisation (market-cap) of Rs 2 trillion mark (Rs 2 lakh crore), as the stock has rallied over 25 per cent thus far in the month of November.

Shares of Adani Enterprises hit a new high of Rs 1,788, up nearly 5 per cent on the BSE in Wednesday’s intra-day trade. The stock is just 2 per cent away to achieve Rs 2 trillion market-cap mark. At 02:08 pm; Adani Enterprises market-cap stood at Rs 1.96 trillion, the BSE data showed.

Currently, other two Adani group companies, Adani Green Energy (Rs 2.20 trillion) and Adani Transmission (Rs 2.14 trillion) have a market-cap more than Rs 2 trillion.

Thus far in the month of November, the stock of Adani Enterprises has outperformed the market, by surging 25.5 per cent, as compared 0.75 per cent decline in the S&P BSE Sensex.

Since October 28, in 17 trading sessions, the market price of Adani Enterprises has appreciated by 28 per cent after Economics Times reported that the company is in talks for $2 billion mega fund raise. The company is in talks with at least half a dozen sovereign and global pension funds and energy majors, such as the Abu Dhabi Investment Authority (ADIA), the Qatar Investment Authority (QIA), a BNP Paribas arm and TotalEnergies SE, to raise up to $2 billion in equity sales, the report had suggested.

However, Adani Enterprises on October 29, clarified that there is no such development and therefore, the above mentioned news item is factually incorrect. “We are unable to comment on media speculation on rumors and it would be inappropriate on our part to do so,” the company said.

Adani Enterprises is presently focused on businesses related to airports, roads, water, data centre, solar manufacturing, defence and aerospace, edible oils and foods, mining, integrated resource solutions and integrated agri-supply chain.

Meanwhile, last month, Adani Wilmar (AWL), a 50:50 joint venture company between the Adani group and the Wilmar group, had received capital markets regulator Securities and Exchange Board of India's (Sebi's) go-ahead to launch initial share-sale. On August 2, 2021, Adani Enterprises announced that AWL had filed its draft red herring prospectus with the Sebi in relation to its proposed Initial Public Offering (IPO) to raise up to Rs 4,500 crore.

In the foods segment, AWL is one of the fastest growing FMCG companies in India. The Company provides the largest range of edible oils (drawn from soya, sunflower, mustard, rice bran, groundnut, cotton seed and others). A significant majority of AWL sales pertain to branded products accounting for approximately 73 per cent of edible oil and food and FMCG sales volume for the financial year 2021.

The net proceeds from the IPO are proposed to be used by AWL to fund capital expenditure for expansion of AWL's existing manufacturing facilities and developing new manufacturing facilities, repayment/prepayment of borrowings, to fund strategic acquisitions and investments and for general corporate purposes, the company said in Draft Red Herring Prospectus (DRHP).