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Adani Enterprises rallies 6% on report promoters sell stake via block deal

Till 10:49 am; around 23 million shares of Adani Enterprises had changed hands, as compared to an average sub 7 million shares traded over last 10 days on the NSE

Adani group, adani enterprises

Deepak Korgaonkar Mumbai

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Shares of Adani Enterprises surged 6 per cent to Rs 2,418.60 on the National Stock Exchange (NSE) in Wednesday’s intra-day trade on the back of heavy volumes. Till 10:49 am; around 23 million shares of the company had changed hands, as compared to an average sub 7 million shares traded over last 10 days on the NSE.

The upmove came as the promoter entities of Adani group sold part of their stake in Adani Green Energy and Adani Enterprises to raise $1 billion. The proceeds will be used by the promoters to pre-pay debt.

About 48 million shares, or 3 per cent of total equity of Adani Green changed hands and 1.6 per cent stake or 18 million shares in AEL was sold via block deals to several investors. Total shares worth Rs 8,542 crore were sold. READ HERE

The stock of the Adani group flagship company recovered its entire loss of 5.4 per cent recorded in the past five trading days on reports that the US authorities had opened an inquiry into statements made by the group during its investor meetings.

The group, however, clarified that it is not aware of any subpoena to the US investors and reaffirmed that all of its disclosures are a matter of public record. In a late statement, the group said it is routine that various regulators seek access to public material in an easy and referenceable manner.

The expert committee appointed by the Supreme Court of India has already filed a report. The report states that Adani Group has taken mitigation measures such as paring down debt, fresh infusion, which led to increase in investor confidence, it said in a statement. CLICK HERE FOR FULL STATEMENT

Meanwhile, Adani Enterprises in its financial year 2022-23 (FY23) annual report said that the expert committee did not find any regulatory failure.

The committee’s report not only observed that the mitigating measures, undertaken by the company helped rebuild confidence but also cited that there were credible charges of concerted destabilization of the Indian markets, it said.

“It also confirmed the quality of our group’s disclosures and found no instance of regulatory failure or any breach. While the Securities and Exchange Board of India (SEBI) is still to submit its report in the months ahead, we remain confident of our governance and disclosure standards,” the company added.

Adani Enterprises is engaged in mining & services, resource logistics, new energy supply chain including solar module and cell manufacturing, transport & logistics business like Airports and Roads, utility like Water and Data Centres, edible oil & food businesses in India and internationally.

The company operates as an incubator focusing on establishing new businesses in transport & logistics and energy & utility sector, apart from increasing its focus on direct-to-consumer businesses.

Adani Enterprises said the company’s defence manufacturing complex in Kanpur is expected to be commissioned in the third quarter; full scale production is expected by the fourth quarter. Limited series production of very short-range air defence systems is also expected to be undertaken. 

The outlook for the airport infrastructure business is positive on account of the government’s decision to progressively divest ownership stakes in Indian airports in favour of private operators. The outlook for the company is underpinned by the fact that India is expected to emerge as the third largest aviation market catalyzed by the government’s decision to popularize the public-private partnership model, graduate India into an Maintenance, Repair and Overhaul (MRO) hub, flexible use of air space and matured regulatory framework with assured returns, it said. 

Tech View
Target: Rs 2,579, Rs 2,650
Support: Rs 2,277

The stock of Adani Enterprises is testing its 20-day moving average (20-DMA) of Rs 2,417.5. As and when it decisively sustains above it, it could touch Rs 2,557 (higher end of the Bollinger Band) and Rs 2,579 levels (super-trend line), shows daily chart. 

The weekly charts further flash targets of Rs 2,650 (super-trend line resistance), and Rs 2,800 (50-WMA).

Momentum oscillators like RSI and stochastic indicators are also supportive of this upmove.

That said, the stock's MACD indicator is cooling off, and is approaching the zero line, suggesting the rally from here on could be slow.

Moreover, the stock's 100-DMA is lower than its 200-DMA, signaling caution. Any correction, therefore, may find support at Rs 2,277 (lower end of the Bollinger Band), followed by Rs 2,199 (100-DMA), as per the daily chart.

(With inputs from Nikita Vashisht)

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First Published: Jun 28 2023 | 11:52 AM IST

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