Shares of Adani group are recovering led by Adani Enterprises: Group market cap rises by ₹25,575 crore

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  • Shares of the Adani group rallied on Wednesday, led by flagship Adani Enterprises, which rose more than 8%.
  • The upswing comes after the Gautam Adani-led group refuted allegations of only partial and non-payment of margin-linked loans.
  • Seven out of 10 Adani Group stocks closed the day in the green, while three ended in the red.

Shares of the Adani group rallied on Wednesday, led by flagship Adani Enterprises, which rose more than 8%. The combined market capitalization of the group rose by ₹25,575 crore on Wednesday. Seven out of 10 Adani Group stocks closed the day in the green, while three ended in the red.

The upswing comes after the Gautam Adani-led group refuted allegations of only partial and non-payment of margin-linked loans. On Tuesday, all ten shares of the Adani group plummeted, leading to a drop of ₹58,240 crore in the combined market capitalization of the group.

“Adani has completed the full upfront payment of margin-linked, equity-backed financing totaling $2.15 billion and all corresponding equity committed for those facilities has been released,” Adani Enterprises said in its exchange filing.

The company also shared its existing pledge position across group entities, in addition to the change from the quarter ended December 31, 2022.

Company Pledge position as at 31 December 2022 Commitment status as of March 27, 2023
Adam Green 4.4% 3.5%
Adani Gates & SEZ 17.3% 4.7%
Adani transmission 6.6% 3.8%
Adani Enterprises 2.7% 0.6%

Source: Adani Enterprises

Adani group CFO Jugeshinder ‘Robbie’ Singh posted data from the National Stock Exchange and said failure to release promoters’ pledged shares in group companies was a “deliberate misrepresentation.”

Company Current market price Change in market capitalization
Adani Enterprises ₹1,740.4 ₹ 21,703 crore
Adani Gates & SEZ ₹636.65 ₹ 10,003 crore
Adani power ₹182.5 ₹3,511 crore
Adani Wilmar ₹386.55 ₹ 2,517 Crore
Ambuja cements ₹363.9 ₹931 crore
ACC ₹1,625.9 ₹225 crore
NDTV ₹182.6 ₹59 crore
Adani transmission ₹1,003.45 – ₹1,432 crore
Adani total gas ₹871.7 – ₹4,674 crore
Adam Green ₹894.35 – ₹7,269 crore
Total ₹25,575 crore

Source: NSE, as of March 29, 2023

Five of the ten group companies still have a market capitalization of at least ₹ 1 lakh crore, after a recovery, the Adani group has seen a recovery of ₹ 2.3 lakh crore in market capitalization so far in March.

On Tuesday, a report was released by the Economic times claimed that the Adani group wants to renegotiate the term of the $4 billion loan taken out last August for the acquisition of ACC and Ambuja Cements from the Holcim group.

Media subsidiary AMG Media Networks of Adani Enterprises also completed the acquisition of a 49% stake in Quintillion Business Media for ₹48 crore.

Four stocks of the Adani group are still down more than 50%

Four shares of the Adani group are still down more than 50% since January 24. Adani Total Gas and Adani Transmission have been down the most, while Ambuja Cements and Adani Ports & SEZ have been the most resilient.

Company Total decrease since January 24
Adani total gas -78%
Adani transmission -64%
Adam Green -53%
Adani Enterprises -49%
NDTV -36%
Adani power -34%
Adani Wilmar -32%
ACC -30%
Ambuja cements -27%
Adani Gates & SEZ -16%

Source: NSE, as of March 29, 2023

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