Shares of Adani group companies including Adani Green Energy, Adani Total Gas and Adani Power hit their respective 5 per cent upper circuit limits while others also gained after the group said it has repaid share-based financing of Rs 7,374 crore and would prepay all such remaining loans by the end of the month.
Following the development, Adani Power Ltd hit its 5 per cent upper circuit limit at Rs 186.75. Adani Transmission hit its upper circuit at Rs 819.90. Adani Green Energy was locked at its upper circuit limit of Rs 619.60. Adani Total Gas also hit its upper circuit limit at Rs 861.90. Adani Wilmar was up 4.85 per cent at Rs 460.50. Adani Ports & SEZ rose 1 per cent to Rs 697.55 while Adani Enterprises was up 1.63 per cent at Rs 2,015.10. Other group stocks namely Ambuja Cements Ltd, ACC Ltd and NDTV edged higher.
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Adani group said the fresh repayment will release pledge on shares of promoters in four group companies. The group had in February pre-paid $1.11 billion loans, which were backed by shares of some of its companies. With Tuesday’s repayment, the group has so far repaid around $2.02 billion of share-backed financing.
The fresh development came after SB Adani Family Trust last week sold Rs 15,446 crore worth stakes in four Adani group firms to US-based GQG Partners. Besides, the conglomerate has lined up more road shows to shore up investor confidence after Hindenburg Research’s scathing report on January 24, which sent the group market capitalisation falling as much as $150 billion recently. The moves are seen boosting investor confidence, as seen in the recent recovery in Adani group shares.
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GQG Partners on Thursday via block deals bought 38,701,168 Adani Enterprises Ltd shares at Rs 1,410.86 apiece for Rs 5,460 crore. It purchased 88,600,000 Adani Ports shares at Rs 596.20 apiece for Rs 5,282 crore. In Adani Transmission, it bought 28,400,000 shares at Rs 668.40, totalling Rs 1,898 crore. Besides, it bought 55,600,000 shares of Adani Green Energy at Rs 504.60, valuing Rs 2,806 crore.
Jain told Reuters the Australian-listed firm had carried out its own ‘deep dive’ into Adani and disagreed with Hindenburg’s report.
Meanwhile, there are reports that the ports-to-power conglomerate would hold fixed-income road shows this month in London, Dubai, and several cities in the United States. Also, LIC team met up with the Adani Group’s top management and post the meeting it is more confident of the group’s business prospects.
