Shares of Adani Group of companies on Wednesday were trading in the green zone adding to gains from earlier trading sessions.
Shares of Adani Enterprises Ltd jumped over 14% on Wednesday and hit an intra-day high of ₹1,568 and intra-day low of ₹1,411 following the news that the company has been declared as the preferred bidder for Kutrumali bauxite block by the Odisha government.
Subsequently a 'Letter of Intent' dated February 27 has been issued by Government of Odisha in respect of the following mineral block in Odisha.
Other Adani group of companies, Adani Ports & Special Economic Zone Ltd and Adani Total Gas Ltd gained 3% each, while Adani Green Energy Ltd, Adani Power Ltd, Adani Wilmar Ltd, Adani Transmission Ltd were up by 5% each on Wednesday.
Further, the news reports about the group company's plans to repay its debts by March 2023 and the upcoming fixed income roadshows by the company in Hong Kong and Singapore added to the positive sentiment.
Since the release of the Hindenburg Research report on January 24, until February 27, the stock price of Adani Enterprises fell by 65%, Adani Total Gas slumped by 81.5%, Adani Transmission by 75.5%, Adani Wilmar by 40%, Adani Ports & Special Economic Zone by 26%, Adani Green Energy by 75.9%, and Adani Power by 49%.
According to Avinash Gorakshakar, Head Research of Profitmart Securities, it might take another six months for all of the Adani Group companies to recover from the recent price correction. The group is currently trying to reassure the investors by lowering its debt levels and removing pledges, but anytime a price trend is broken, it usually takes at least four to six months for the price to recover.
Also Read: Three Adani Group stocks plummet up to 80% in a month; m-cap drops below ₹6.5 lakh crore
