scorecardresearchFive Adani stocks locked in 5% upper circuit limit as group prepays ₹7,347-crore

Five Adani stocks locked in 5% upper circuit limit as group prepays 7,347-crore loans

Updated: 08 Mar 2023, 01:27 PM IST
TL;DR.

Five out of seven listed group stocks, including Adani Total Gas, Adani Green Energy, Adani Transmission, Adani Power, and Adani Wilmar, were locked in 5% upper circuit limit in today's trade.

Last week, the Adani Group's seven listed stocks saw a sharp rise in their combined market value by  <span class='webrupee'>₹</span>1,29,546 crore, resulting in their best week since January 24.

Last week, the Adani Group's seven listed stocks saw a sharp rise in their combined market value by 1,29,546 crore, resulting in their best week since January 24.

Shares of Adani Group companies continued their upward trend during Wednesday's trade following a strong close in the previous trading session. The surge in group stocks was triggered by an announcement made on Tuesday by the conglomerate, stating that it had prepaid 7,374 crore in share-based financing and plans to prepay all remaining loans of that nature by the end of the month.

This move was made to address concerns about the company's level of debt and leverage, in an effort to regain investor confidence. Previously, in February, the Adani Group promoters prepaid loans worth 9,200 crore against the shares of three of the group's listed companies.

This has helped in the release of 11.77 million shares in Adani Transmission Ltd. and 168.27 million shares in Adani Ports & Special Economic Zone Ltd., along with 27.56 million shares in Adani Green Energy Ltd.

The latest early payment of 7,374 crore will help release an additional significant number of pledged shares of promoters in four group companies.

In particular, the payment will allow for the release of 31 million shares, equivalent to a 4% stake in Adani Enterprises and 155 million shares, or an 11.8% stake in Adani Ports & Special Economic Zone.

Adani Transmission's 36 million shares, which make up 4.5% of the promoters' holdings, will be released. Similarly, for Adani Green Energy, 11 million shares, which account for 1.2% of the holdings, will also be released.

Following the development, five out of seven listed group stocks, including Adani Total Gas, Adani Green Energy, Adani Transmission, Adani Power, and Adani Wilmar , were locked in a 5% upper circuit limit in today's trade.

Other stocks, such as Adani Enterprises and Adani Ports & SEZ, are trading higher in the range of 1–2%.

In addition, Adani Power on Tuesday said that it has amalgamated its six subsidiaries, including Adani Power (Mundra), with itself, PTI reported. 

The group stocks rebounded strongly last week after US investment firm GQG Partners invested 15,446 crore by purchasing a stake in four Adani Group firms.

This investment was seen as a positive development for the Adani Group, which has been embroiled in a series of allegations, ranging from stock manipulation to high levels of debt, levelled by short-seller Hindenburg Research.

The stake purchase by GQG Partners marked the first major investment in billionaire Gautam Adani's conglomerate since the Hindenburg report, which resulted in seven of the Indian group's listed firms losing about 11 lakh crore in market value.

Last week, the group's seven listed stocks saw a sharp rise in their combined market value by 1,29,546 crore, resulting in their best week since January 24.

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Exposure to Adani group.
First Published: 08 Mar 2023, 01:27 PM IST