Shares of Adani Group companies traded positively in morning trade on Thursday amid a broader market rally. The stock of Adani Enterprises climbed 5.36%, Adani Wilmar jumped 5%, Adani Transmission rose 4.99%, Adani Green Energy increased 4.99%, and Adani Total Gas rose 4.99% on the BSE. Additionally, NDTV shares surged 4.99%. Adani Power climbed 4.97%, Adani Ports advanced 3.82%, Ambuja Cements rose 2.80%, and ACC increased 2.11%.
However, Adani Total Gas shares pared early gains and were trading 3.29% lower. The BSE Sensex was quoted at 61,630.53, up 355.44 points.
Most of the Adani Group stocks had ended higher on Wednesday. The group’s balance sheet is “very healthy” and is laser-focused on continuing business momentum, according to billionaire Gautam Adani’s embattled conglomerate, which is looking to reassure investors to keep faith in the group despite a share rout triggered by a damning report by a US short-seller.
Group CFO Jugeshinder (Robbie) Singh stated in an earnings call that the group is confident of its internal controls, compliance, and corporate governance. “Our balance sheet is very healthy. We have industry-leading development capabilities, strong corporate governance, secure assets, and strong cash flows,” Singh said.
The group has been under pressure since January 24 when Hindenburg Research accused it of accounting fraud and stock manipulation. The conglomerate denied the allegations as “malicious,” “baseless,” and a “calculated attack on India.” The listed companies of the group have lost over USD 125 billion in market value in three weeks.
Adani Total Gas shares saw a decline after the company announced a public offering of shares for sale by Adani Infrastructure and Developers, an Adani Group firm, which aims to raise up to INR 1,200 crore. The floor price for the offer has been set at INR 1,050 per equity share. The Adani Group owns a 74.8% stake in Adani Total Gas.
Despite the recent allegations and subsequent decline in share prices, the Adani Group has been pursuing a robust business strategy. Adani Group has committed to being net zero carbon by 2050, ahead of the Paris Agreement’s timeline. The company will establish a renewable energy manufacturing unit in Gujarat, with a production capacity of 2 GW of solar cells and modules.
Furthermore, the group is working to develop the world’s largest solar park in Rajasthan, with a target capacity of 10 GW. The park will be developed in phases, with the first phase being commissioned by 2022.
The Adani Group has also been actively pursuing opportunities in the ports and logistics space. Adani Ports and Special Economic Zone (APSEZ), the group’s port operating unit, has been expanding its operations both organically and inorganically.
In June 2021, APSEZ acquired the Krishnapatnam Port Company Ltd (KPCL) for INR 12,000 crore, making it India’s largest private sector port operator. Additionally, APSEZ is developing a new container terminal at the Vizhinjam International Seaport in Kerala.
In conclusion, Adani Group firms traded positively in morning trade amid a broader market rally, following a recent decline in share prices due to allegations of accounting fraud and stock manipulation. The Adani Group is committed to pursuing a robust business strategy, focusing on renewable energy and port and logistics expansion, and has reassured investors of the health of its balance sheet and corporate governance.
