Adani upswell adds 65% to Tuesday’s stock market gain
₹2.9 trillion, investors in Adani group companies turned wealthier by ₹1.9 trillion, marking the biggest single-day jump in value for the infrastructure conglomerate. Three Adani companies shot up 20% each to hit their upper circuit limits, even as the group’s market cap neared ₹14 trillion.
Adani Green Energy Ltd, Adani Energy Solutions Ltd and Adani Total Gas Ltd were locked at their upper limits of ₹1,348.50, ₹1,084.40, and ₹878.70 respectively, In the two trading sessions since the Bharatiya Janata Party (BJP) clinched thumping victories in three state polls, Adani stocks have now contributed 30% to the ₹8.79 trillion addition in investor wealth. The Gautam Adani-led infrastructure conglomerate had briefly turned capex-cautious after a scathing 24 January report by US-based short-seller Hindenburg Research slammed its stocks.
The group that had pledged to control debt levels in April, on Tuesday raised $1.36 billion from a consortium of eight foreign lenders for its renewables arm Adani Green Energy that is planning a 45 GW project through a mega-project in Gujarat’s Khavda. Just six weeks ago, Adani took a $3.5 billion loan to refinance its cement acquisitions—Ambuja Cements Ltd and ACC Ltd.
The group, with over ₹2.27 trillion in debt and subjected to an investigation by Sebi over the past seven months following allegations of “fraud" and “manipulation" by the Hindenburg report, was pushed into a capital-conservation mode. But recent developments favoured Adani group, spurring a change in the group’s strategy.
While reserving its final verdict, the Supreme court on 24 November said reports from short-sellers (such as Hindenburg’s) are neither “credible" nor “true state of affairs". Adani shares have gained since
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