The share price of most Gautam Adani-led companies traded in the green on Wednesday (July 26). Adani Green Energy shares were up 5.93% at Rs 1,152.55 per share at 12:14 pm IST. The sharp rise in Adani green energy shares is probably due to the news that the company is lining up investor meetings. In the last one month the stock has gained nearly 19%. The share price of Adani Group's flagship company Adani Enterprises gained 1% at Rs 2,491.20 per share at 12:08 pm IST. In the last one month Adani Enterprises shares have gained 8.52%. Meanwhile, the share price of Adani Ports And Special Economic Zone was also up 1.85% at Rs 763.10 per share in the intraday trading. Adani Ports shares have gained 5% in the past one month.
The positive price movement in the shares of Adani Group stocks was seen even though there was no new market-sensitive announcement by the company.
The Adani group shares saw a selloff for a brief period at the beginning of this year after the US Short seller Hindenburg Research levelled serious charges against the Indian conglomerate on January 24.
However, after almost six months of the controversial report, it is seen that the company has successfully won the trust of investors. This is because in the quarter just gone by desi investors have raised their bets in the Indian conglomerate, led by mutual funds and retail investors. However, foreign portfolio investment (FPI) slashed their holdings in six companies.
In the quarter ended June, Mutual funds raised their stakes in seven out of 10 listed Adani Group companies, and retail investors increased stakes in five companies.
Mutual funds’ cumulative holdings rose by 31 basis points (bps) sequentially each in ACC and Adani Enterprises in the quarter just gone by.
Last week, the US-based investment company Bain Capital said that it has signed an agreement to acquire 90% stake in Adani Capital and Adani Housing, acquiring all of the Adani family's private investments in the company. Bain said that Gaurav Gupta will retain the remaining 10% stake in Adani Capital and will continue to act as its Managing Director and CEO. Bain's investment comes after Rajiv Jain’s US-based asset management firm GQG Partners raised its stake in Gautam Adani's conglomerate by about 10% in May this year.
In the last four months I..e since March this year, Adani Green has given over 90% returns since March, while the last four months' returns from Adani Power and Adani Enterprises are up 70% and 57% respectively.
Recently, Indian billionaire Gautam Adani spoke openly about the much talked about Hindenburg Research's Report at Adani Enterprises' annual general meeting (AGM) and said that the Hindenburg report was a combination of targeted misinformation and a deliberate and malicious attempt to damage the reputation of the Adani group and generate short-term profit by driving down Adani group stocks.
Commenting on the financial health of the company, he said that Adani Group companies have set new financial performance records for FY 22-23. Total EBITDA rose by 36% to Rs 57,219 crore, total income increased by 85% to Rs 2,62,499 crore, and total PAT expanded by 82% to Rs 23,509 crore.
Gautam Adani said that the Group’s accelerating cash flow further enhanced its net Debt to run rate EBIDTA ratio from 3.2x to 2.8x.