After a massive loss in market capitalization, following the Hindenburg report, Adani group stocks seem to have recovered. Adani Enterprises closed 16.60% higher, while Adani Ports and SEZ settled 9.76% higher. Moreover, the other 5 listed companies of the group hit the 5% upper circuit mark on Friday.
| Company | 1 day returns (%) 5 days return |
| Adani Enterprises | 16.60 43.28 |
| Adani Power | 5 18.02 |
| Adani Green Energy | 5 21.54 |
| Adani Ports & Special Economic Zone | 9.76 20 |
| Adani Transmission | 5 9.97 |
| Adani Total Gas | 5 9.39 |
| Adani Wilmar | 5 16.80 |
| Ambuja Cements | 5.02 13.52 |
| ACC | 4.92 9.56 |
| NDTV | 5 18.50 |
The reason behind the rebound could be attributed to large deals from foreign institutional investors and also other institutional investors. The group has sold stakes worth ₹ 15,446 crores to a leading US-based global equity investment boutique GQG Partners, according to the company’s official statement.
According to data on the bourses, Adani Group entity SB Adani Family Trust sold shares worth ₹15,446 crore ($1.87 billion) in Adani Ports & SEZ, Adani Green Energy, Adani Transmission and Adani Enterprises. GQG Partners bought 38.7 million shares or 3.39% of the share capital of Adani Enterprises, at ₹1,410.86 apiece,valued at ₹5,460 crore.
Block deals happened in Adani Ports and Special Economic Zone Limited, Adani Green Energy Limited, Adani Transmission Limited and Adani Enterprises. GQG has become a key investor in the development and growth of critical Indian infrastructure, the group added.
In another development, the Supreme Court formed a committee to examine the country’s investor protection regime following the Hindenburg report. The 6-member committee will examine the allegations after the US-based short seller fuelled large investor losses. Gautam Adani welcomed the order and said that it will bring finality in a time-bound manner.
Market analysts however say that this might not be a recovery of Adani group stocks. While the committee is closely working with SEBI, the outcome can swing in any direction. Moreover, the recovery in its share prices would make more sense, if it sustains for a longer duration.
Written by Simran Bafna
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