Adani Enterprises hits 5-month high; shares surge 21% in 8 days

Shares of Adani Enterprises were trading at their highest level since June 4, 2021

Adani group, adani enterprises

Shares of Adani Enterprises hit a five month high of Rs 1,686, up 3 per cent on the BSE in Wednesday's intra-day trade, in an otherwise subdued market. The stock of the flagship company of the Adani Group was trading higher for eighth straight trading day, having rallied 21 per cent during the period.

Shares of Adani Enterprises were trading at their highest level since June 4, 2021. It had hit a record high of Rs 1,718.45 on June 7, 2021.

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.

Last month, Adani Wilmar (AWL) 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, a 50:50 joint venture company between the Adani group and the Wilmar group (Singapore), 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). As a growing foods brand, the Company ventured into the wider foods categories comprising packed basmati rice, pulses, soya chunks, besan, atta and khichdi. The company’s products portfolio comprises prominent brands like Fortune, King’s, Bullet, Raag, Avsar, Pilaf, Jubilee, Fryola, Alpha, Alife and Aadhar.

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.