NEW DELHI: Shares of Adani Enterprises (AEL), the flagship company of Adani Group, have surged well over 100% in the past four trading sessions after hitting its 52-week low of Rs 1,017 on February 3. AEL closed 20% higher on Wednesday (Feb 8) at 2,159.
Despite this four-session recovery, AEL shares are still down by over 35% when compared with January 25 share prices, the day when US-based short seller Hindenburg Research accused the Adani Group of committing financial fraud.
Adani Ports & Special Economic Zones (APSEZ) shares have also seen a big recovery in the last 4 sessions after hitting a 52-week low of Rs 395 on February 3. APSEZ shares closed 8% higher on Wednesday at Rs 599 but are down by about 20% when compared with January 25 prices.
The pick-up in Adani shares comes as the billionaire Gautam Adani promoted port-to-power conglomerate took some precautionary steps, including prepayment of its loans, to calm down investors’ sentiments.
Adani Group’s market capitalization had plummeted by close to Rs 10 lakh crore between January 25 and February 5 after Hindenburg accused the Group of pulling the “largest con in corporate history” by engaging in “brazen stock manipulation and accounting fraud” over the course of two decades.
The Adanis have called the Hindenburg report “maliciously mischievous and unresearched” and said it was evaluating legal action. A positive commentary by a few financial institutions also helped the stocks after big names such as Credit Suisse and Citigroup stopped accepting Adani bonds for loans.Adani Group’s earnings in the December ending quarter, however, have been mixed so far. Adani Power on Wednesday reported 96% decline in consolidated net profit at Rs 8.77 crore for Q3FY23 while Adani Wilmar’s net profit grew by 16% to Rs 246 crore.
The shares of the two firms hit their upper price band of 5% on Wednesday. In total, 7 stocks of the 10 listed group companies logged gains on Wednesday. The three firms closed in red were Adani Total Gas, Adani Green and ACC.
Shares up as Group takes measures
Pick-up in Adani shares comes as billionaire Gautam Adani promoted conglomerate took some precautionary steps, including prepayment of its loans, to calm down investors’ sentiments. APSEZ shares have seen a big recovery in last 4 sessions