AHMEDABAD: GUJARAT : 21/11/2024 : Adani Corporate House at Shantigram outskirts of Ahmedabad on Thursday November 21, 2024. Photo : VIJAY SONEJI / THE HINDU.
| Photo Credit: VIJAY SONEJI

Adani group stocks were in heavy demand on Tuesday, with Adani Power surging over 19 per cent, bouncing back from previous day’s decline.

The stock of Adani Enterprises soared 8.91%, Adani Ports climbed 6%, Ambuja Cements went up by 4.79%, ACC (4.50%), Sanghi Industries (4.22%) and Adani Wilmar (3%). All Adani group stocks had ended lower on Monday’s trade in-line with weak trend in equities.

Benchmark indices Sensex and Nifty rebounded on Tuesday after four days of sharp decline.

The 30-share BSE benchmark Sensex jumped 505.6 points to 76,835.61 in intra-day trade. The NSE Nifty climbed 179 points to 23,264.95.

New Delhi:

Adani Group companies’ stocks added nearly Rs 27,000 crore to investors’ wealth as most stocks gained in trading this morning.

The market capitalisation of Adani Group firms rose Rs 26,894.46 crore to Rs 13.55 lakh crore at 11.03 am.

The Adani Group companies’ stocks rose 9 per cent.

The group is in early talks to refinance loans worth $1.1 billion.

Nomura had earlier this week said the stocks of Adani companies were the most attractive compared to other Indian companies.

Nomura said the Gautam Adani-led conglomerate can easily face recent turmoil caused by legal issues connected with the US Department of Justice. This is because the Adani Group’s liquidity management has improved, Nomura said.

Adani Green Energy Ltd and Adani Power Ltd were leading the gains among other stocks. Adani Green Energy Ltd jumped 7.38 per cent to Rs 1,232.80 apiece, the highest level since December 9. It was trading 6.42 per cent higher at Rs 1,221.75 apiece as of 11.08 am.

Adani Power Ltd share price rose as much as 5.11 per cent to Rs 545.80 apiece, the highest level since December 6. It was trading 4.36 per cent higher at Rs 541.90 apiece as of 11.09 am.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

A man walks past a corporate office of Adani Group in Gurugram, India, November 22, 2024. REUTERS/Priyanshu Singh
| Photo Credit: Reuters

Shares of all 11 listed Adani Group firms rallied in morning trade on Friday (November 29, 2024), with Adani Green Energy surging nearly 15%.

Shares of Ambuja Cements went up by 2.90%, Sanghi Industries (2.44%), Adani Ports (2.25%), Adani Wilmar (2.24%), Adani Enterprises (2.11%) and ACC (1.34%).

The BSE benchmark Sensex traded 688.31 points higher at 79,732.05 and the NSE Nifty jumped 192.65 points to 24,106.80.

Abu Dhabi’s International Holding Company (IHC), one of the largest sovereign funds that manages assets close to $100 billion, has reaffirmed its support to the Adani Group, saying its outlook on investments in the group remains unchanged despite the U.S. indictment of the conglomerate’s founder chairman Gautam Adani.

“Our partnership with the Adani Group reflects our confidence in their contributions to the green energy and sustainability sectors,” IHC, one of Adani group’s key foreign investors, said in a statement.

“As with all our investments, our team continues to evaluate relevant information and developments. At this time, our outlook on these investments remains unchanged.” The IHC statement comes soon after Adani group emphasised that its chairman and his aides have not been charged under the U.S. Foreign Corrupt Practices Act but faced three other charges, including securities and wire fraud that are punishable with monetary fines.

The U.S. Department of Justice’s (U.S. DoJ) indictment filed in a New York Court last week does not mention Gautam Adani, founder chairman of the ports-to-energy conglomerate, his nephew Sagar or Vneet Jaain in any count related to conspiracy to violate the FCPA, AGEL – the firm at the heart of allegation of $265 million bribes allegedly being paid to Indian officials to secure solar power sale contracts that could benefit bring in $2 billion of profits more than 20 year period to the firm, had said in a filing to the stock exchange.

Adani Group last week denied all allegations as baseless and said it would seek legal recourse to defend itself.

Meanwhile, other international partners have also expressed their continued support. The Sri Lanka Ports Authority has expressed its ongoing confidence in its partnership with Adani, as the Indian group plays a vital role in expanding the country’s port infrastructure.

Also, the Tanzanian government has reaffirmed its commitment to its agreements with Adani Ports, as it feels that there are no concerns regarding the ongoing projects and that all contracts fully comply with Tanzanian law.

In May 2024, Tanzania and Adani Ports finalised a 30-year concession agreement to operate Container Terminal 2 at Dar es Salaam port.

Shares of Adani Enterprises went up by 4%, Adani Wilmar (3.23%), ACC (3%) and Ambuja Cements (2.71%) on the BSE. 
| Photo Credit: Reuters

Shares of nine of the ten Adani group firms climbed on the bourses in morning trade on Monday (November 25, 2024), with Adani Energy Solutions surging nearly 7%, in-tandem with a rally in the equity market.

The stock of Adani Energy Solutions jumped 6.89%, Adani Green Energy soared 6.42%, Adani Total Gas surged 5.33%, Adani Ports climbed 4.64% and Adani Power rallied 4.17% on the BSE.

Billionaire Gautam Adani’s group on Saturday (November 23, 2024) clarified on reports of Kenya cancelling more than $2.5 billion in deals after the U.S. indictment on bribery charges, saying it had not entered into any binding agreement to operate Kenya’s main airport.

On the pact it had signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group said the project did not fall within the ambit of SEBI’s disclosure regulations, thereby not warranting any disclosure on its cancellation.

The group was responding to notices sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering the cancellation of a procurement process that had been expected to award control of the country’s main airport after the conglomerate’s founder was indicted in the United States.

Adani Enterprises Limited, the flagship firm of Gautam Adani’s group which houses its airport business, in a filing said it had in August this year incorporated a step-down subsidiary in Kenya to upgrade, modernise, and manage airports.

“While the company was in discussion with the relevant authority for the said project, till date neither the company nor its subsidiaries (i) have been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in connection with any airport in Kenya,” the firm said.

This grab from a video released by Adani Enterprises Ltd. on Thursday, Feb.2, 2023, shows Indian billionaire Gautam Adani.
| Photo Credit: AP

Adani Enterprises Ltd opened at ₹2,101, which is 3.8% lower than the previous close on the National Stock Exchange, as the Kenyan government cancelled Adani Group projects in response to the U.S. court’s allegations of bribery and fraud. The stock dip immediately moderated reaching ₹2,122 by 10:30 a.m.

On the Bombay Stock Exchange (BSE), the stock opened at ₹2,090.10, which was 4.2% lower than the previous close, but reduced the dip and gained hitting ₹2,117.45, roughly at the same time.

Stocks of the Apple to airport conglomerate plummetted more than 10% on November 21, following the New York district court allegations like bribery, wire fraud, securities fraud and obstruction of justice were placed on Gautam Adani, the Chairperson promoter of the group, his nephew Sagar Adani and other board of directors of the company.

The company however called the allegations baseless, denied them and further said that they would use all possible legal recourse in a statement to the exchanges on November 21.

Adani Group’s plunged up to 20% on Thursday after he was indicted by U.S. prosecutors on charges he duped investors in a solar energy project in India by concealing that it was being facilitated by an alleged bribery scheme.

In an indictment unsealed by federal prosecutors in New York on Wednesday (November 20, 2024), Gautam Adani, 62, was charged with securities fraud and conspiracy to commit securities and wire fraud.

Also read: Gautam Adani U.S. indictment LIVE 

The flagship company Adani Enterprises witnessed a sharp decline of 20% in its share value, while Adani Energy Solutions experienced an identical drop. Adani Green Energy saw a reduction of 19.17%, Adani Total Gas decreased by 18.14%, Adani Power fell by 17.79%, and Adani Ports registered a 15% decline on the BSE.

Adani Enterprises

Adani Enterprises Limited (AEL) is a multinational publicly-listed holding company and a part of Adani Group. Through its various subsidiaries, Adani Enterprises is involved in edible oils and staple foods, airport operations, solar PV manufacturing, road infrastructure, among several other sectors.

Adani Green Energy

Adani Green Energy Limited is one of the largest renewable companies in India, with a current project portfolio of 20,434 MW. The company operates Kamuthi Solar Power Project, one of the largest solar photovoltaic plants in the world.

Adani Power Limited

Adani Power Limited, a part of the diversified Adani Group, is the largest private thermal power producer in India. APL possesses a power generation capacity of 15,250 MW comprising thermal power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand, and a 40 MW solar power project in Gujarat.

Adani Total Gas

Adani Transmission

Headquartered in Ahmedabad, Adani transmission is one of India’s largest private sector electric power transmission companies.

Adani Wilmar

Adani Ports and Special Economic Zones

Adani Ports and Special Economic Zone Limited (APSEZ) is the largest commercial ports operator in India accounting for nearly one-fourth of the cargo movement in the country. Its presence across 13 domestic ports in seven maritime states of Gujarat, Maharashtra, Goa, Kerala, Andhra Pradesh, Tamil Nadu and Odisha.

ACC

Ambuja Cements

NDTV

Share market data from The Hindu Businessline

The case charged against billionaire Gautam Adani and seven others in an alleged multibillion-dollar bribery and fraud scheme in the United States has raised concerns about the commitment made by the Adani Group in Kerala in connection with the development of the Vizhinjam International Seaport.
| Photo Credit: Reuters

The case charged against billionaire Gautam Adani and seven others in an alleged multibillion-dollar bribery and fraud scheme in the United States has raised concerns about the commitment made by the Adani Group in Kerala in connection with the development of the Vizhinjam International Seaport.

Gautam Adani indicted in US bribery scheme LIVE

The port, which is billed to redefine Indian maritime business with its geographical proximity to the international shipping lane linking the maritime hubs in South Asia, Southeast, and West Asia, is scheduled to be commissioned in December this year (2024) or early January next. The latest controversy, it is believed, is likely to throw a spanner in the works for the second phase of the port’s investment over the next four years, which is an estimated ₹9,700 crore. 

However, in a conversation with The Hindu, a senior officer of the Adani Group downplayed the crisis. “Hardly ₹10,000 crore is required for the second phase of expansion of the Vizhinjam port and ₹1,300 crore for the redevelopment of the Thiruvananthapuram International Airport, which was taken over by Adani Group three years ago. This is not a big deal considering the financial position of the company. Further, this is not the first time panic has gripped the market with the company being falsely targeted by vested interests. We are sure that this too shall pass as in the past,” he said.

The Vizhinjam seaport project had missed several deadlines and was dragged into arbitration proceedings after the Adani Group failed to honour the provisions in the agreement signed between Kerala in 2015, according to which the port was to be commissioned in 2019. Later, the Kerala government walked the extra mile to bring the project on track by ending the arbitration proceedings against the port concessionaire halfway through, foregoing the ₹219 crore it was entitled to receive from the concessionaire for delaying the project for some five years.

Interestingly, the Kerala government, which develops the seaport under a Public Private Partnership (PPP) model with Adani Vizhinjam Private Port Limited (AVPPL), had maintained that the arbitration proceedings initiated against the Adani Group had to be withdrawn to make available the viability gap fund (VGF) of ₹817.80 crore allocated by the Central government to the AVPPL. But, in a recent development, the Centre asked Kerala to repay the VGF through revenue sharing, and this would cause an additional financial strain of ₹10,000-12,000 crore on the State government as the VGF would have to be paid back in net present value (NPV) terms through revenue sharing.

One of the conditions set by the State for extension of the deadline of the project to December 2024 was that the second phase of the port development should be completed by 2028, instead of the previous deadline of 2045. 

Not concerned about case: Ports Minister

Kerala’s Minister for Ports V.N. Vasavan told The Hindu that the Kerala government, which contributed ₹5,595 crore of the ₹8,867-crore project in the first phase, was not concerned about the latest case affecting the project as the work on the first phase was over and the trail run had seen the berthing of about 54 container vessels, including some really big ones.

The port, he said, had contributed over ₹8 crore to the exchequer by way of tax. It was also in their [Adani Group’s] interest to begin the second and third phases at the earliest as the port opened a huge potential for the country as evidenced in the trial run, Mr. Vasavan added. 

Opposition legislator M. Vincent, however, said that while the State had been confident in the group given their track record of developing ports over the years, the latest developments looked ominous for Kerala.

Adani Group Chairman Gautam Adani addresses during the Annual General Meeting (AGM) of his group companies, on Tuesday, July 18, 2023.
| Photo Credit: PTI

Gautam Adani on Tuesday said that the U.S.-based short seller Hindenburg Research’s report on the group was a deliberate, malicious attempt at damaging the group’s reputation and generate profit by driving down its stocks in the short term.

He described the report as a mix of targeted misinformation and discredited allegations written by vested interests. He said this while addressing the Annual General Meeting of the group firms in Ahmedabad.

“The report was a combination of targeted misinformation and discredited allegations, the majority of them dating from 2004 to 2015,” he said in his speech.

After the damning report by the short seller that raised questions about the group’s finances and accused it of accounting fraud, the group has reportedly questioned the timing and motive of the report.

Earlier in a 400 page rebuttal, the group had dubbed the report as an “attack on India.”

In his speech, Mr. Adani said the group raised finances from the international markets and no credit agency internationally cut any ratings of the group.