Five stocks of Adani Group companies rose on Wednesday's intra-day trade, with flagship of Adani Enterprises Ltd gaining over 12%.
On the BSE, shares of Adani Enterprises recorded a high of ₹2,045.10 and low of ₹1,843.90, Adani Ports & Special Economic Zone recorded a high of ₹598 and low of ₹564.24, Adani Power recorded a high of ₹182 and low of ₹170.85, Adani Transmission recorded a high of ₹1,314.25 and low of ₹1,273.70, Adani Wilmar recorded a high of ₹419.35 and low of ₹408.10 on Wednesday's intra-day trade.
However, analysts believe this to be a short-term bounce.
The previous session saw the announcement of Adani Ports' December quarterly earnings, which showed a 16.04% on year decline in consolidated net profit at ₹1,315.54 crore while seeing a 17.53% on year increase in operating revenue to ₹4,786.17 crore.
In Q3FY23, it reported the greatest sales and earnings before interest, taxes, depreciation, and amortisation (EBITDA) in over nine months, with an EBITDA increase of 15% on year to ₹3,011 crore.
Following Adani Port's results on Tuesday, February 7, it is no longer subject to the NSE's Futures & Options ban, whereas Ambuja Cements is still under the embargo. Results from Adani Power are expected today.
"Amid ongoing volatile in the market, Adani group stocks are in action trading in green zone after news stating that the promoters are committed to reduce by pre-paying USD 1,114 million and release pledged shares of its firms ahead of the maturity in September 2024. These pledged shares belong to Adani Ports & Special Economic Zones, Adani Green Energy and Adani Transmission. We assume that such moves soothe investors’ concern on the group’s balance sheet post Hindenburg report," said Prashanth Tapse, Research Analyst, Sr VP Research, Mehta Equities.
Hindenburg Research released on January 24 accused Adani Group of participating in manipulation of stock prices and accounting fraud.
Reacting to the report the next day, Adani Group released a media statement where the company said that it was shocked that Hindenburg Research had published a report “without making any attempt to contact the company or verify factual matrix”.
On Thursday, February 2, Adani Group of company called off its follow on public offering (FPO). the company in an exchange filing said that due to unusual circumstances and the current market volatility, it wants to safeguard the interest of its investors base by returning the FPO funds and cancelling the complete transaction.
The company had plans to to raise ₹20,000 crore through its FPO, and wanted to utilise the net proceeds to pay debts (in full or in part) and cover some of the company's subsidiaries' capital expenditure needs.
However, following Hindenburg Research allegation on the Indian giant for participating in a decades-long plan to manipulate stock prices and commit accounting fraud, the shares of Adani Group of companies since Wednesday, January 25 have fallen sharply and lost huge market cap.