Private investors are ‘buying the dip’ in all ten stocks of the Adani group

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  • Private investors increased their holdings in all ten of the Adani group companies and bought into the dip as shares fell in the wake of the Hindenburg report.
  • Flagship Adani Enterprises saw the most purchases, with the number of private shareholders increasing 199% in the March quarter.
  • The combined market capitalization of the Adani group has also increased by almost 45% to ₹11 lakh crore since the low of ₹7.66 lakh crore on 27 February.

Private investors bought the dip in all ten shares of the Adani group in the March quarter, with the number of private shareholders increasing by a whopping 199%. This comes after the Hindenburg report crashed the combined market capitalization of the Adani group by nearly 50% from nearly ₹22 lakh crore on 24th January to ₹11.06 lakh crore now.

Overall, the number of private shareholders increased cumulatively by more than 2.2 million in all ten Adani group companies. Each company saw an increase in retail shareholding in the March 2023 quarter compared to the December 2022 quarter.

Private shareholding in Adani group companieshttp://gotechbusiness.com/ India

On average, the total retail shareholder base grew 47% in the March quarter.

Flagship Adani Enterprises witnessed the biggest increase in both absolute and percentage terms: the total number of private investors increased by 4.85 lakh in the March quarter, representing a 199% increase compared to the previous quarter.

Adani Wilmar, the latest debutant of the Adani group on the stock markets, saw the smallest increase in the number of private shareholders with only 13%.

Private investors are 'buying the dip' in all ten stocks of the Adani group
Change of basic shareholders in the Adani group companies in the March quarterhttp://gotechbusiness.com/ India

Contents

The market capitalization of the Adani Group is on a slow but steady rise

The combined market capitalization of the Adani Group is slowly but steadily climbing back up. After reaching a low of ₹ 7.66 lakh crore on 27 February, it is now above ₹ 11 lakh crore, up nearly 45% in this period.

However, compared to January 24, the group’s combined market capitalization is still down nearly 50%.

Company Current Macap Change since Jan 24
Adani Enterprises ₹2,87,870 crore -46%
Adam Green ₹ 1,71,554 Crore -49%
Adani Gates & SEZ ₹1,51,493 crore -14%
Adani transmission ₹ 1,32,372 Crore -61%
Adani total gas ₹ 1,17,188 Crore -75%
Adani power ₹ 79,216 Crore -29%
Ambuja cements ₹74,704 crore -20%
Adani Wilmar ₹56,692 crore -28%
ACC ₹33,199 crore -25%
NDTV ₹1,304 crore -32%
Total ₹ 11,05,592 Crore -50%

Source: NSE, as of 12 April 2023

Promoters divide the interests into four companies

The promoters split stakes in four Adani group companies in the March quarter – Adani Ports & SEZ, Adani Green, Adani Transmission and Adani Enterprises. US-based GQG Partners took a stake in these companies in early March, investing ₹15,446 crore.

Company Keep promoter Change
Adani Gates & SEZ 61% -4.1%
Adam Green 57.3% -3.5%
Adani Enterprises 69.2% -3.4%
Adani transmission 71.7% -2.5%
Adani Wilmar 87.9% Unchanged
Adani power 75% Unchanged
Adani total gas 74.8% Unchanged
NDTV 69.7% Unchanged
Ambuja cements 63.2% Unchanged
ACC 56.7% Unchanged

Source: NSE, March 2023

The promoter’s interest in six other companies remained unchanged, with Adani Wilmar being the closest with an 87.9% promoter interest.

Company Total investment Average price Current market price
Adani Enterprises ₹5,460 crore ₹1400 ₹1,837
Adani Gates & SEZ ₹5,282 crore ₹593 ₹653
Adam Green ₹2,806 crore ₹501 ₹971
Adani transmission ₹1,898 crore ₹678 ₹1065
Total ₹15,446 crore

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