Adani Group stocks have gained sharply in recent weeks due to a series of positive developments that have revitalised investor confidence in the group’s shares. All 10 listed Adani Group stocks posted double-digit gains last week, with Adani Total Gas surging by as much as 65%.
This upswing is attributed to the positive outlook on the BJP government’s potential return to power in 2024, following the party’s success in three key state elections, which has bolstered investor sentiment.
Also Read: Adani Power raises bid for Lanco Amarkantak Power in second revised offer: Report
Moreover, a Bloomberg News report on Tuesday (December 05) said that the US government had examined Hindenburg’s allegations against the Adani Group and found them irrelevant before granting the conglomerate a $553 million loan for its Sri Lanka port terminal project.
The group stocks have been on the rise since late November, after the Indian Supreme Court said it won’t take media reports on the conglomerate as the “gospel truth” even as it reserved verdict on its probe into Hindenburg’s allegations.
In the last week (December 04–08), the market capitalisation of Adani Green Energy, the renewable energy arm of the Adani Group, jumped by ₹83,000 crore, reaching ₹2,45,520 crore as the stock skyrocketed 51%, jumping in value from ₹1,160 to ₹1,550 apiece. Zooming out, in December so far, the stock has gained 47.76%, registering the biggest monthly gain since March 2023.
On December 05, the company said it had sealed its largest project financing of a $1.36 billion senior debt facility as part of its Construction Financing Framework to enhance the funding pool to $3 billion since initial project financing in March 2021.
The company said that the green loan facility will play a pivotal role in enabling the development of AGEL’s next milestone- the world’s largest renewable energy park at Khavda in Gujarat. The funding also marks a significant achievement in developing 2,167 MW at Khavda in the initial stage and will be the stepping-stone for the future development of the Khavda renewable site, the company added.
Also Read: Adani group to undertake 7 lakh crore investment over next 10 years, Gautam Adani shares details
Meanwhile, Adani Total Gas was another group stock that rallied significantly last week, spiking from ₹701 apiece to ₹1,156.80, producing a return of 65%. This stellar rally has pushed the company’s market capitalisation to ₹1,27,224 crore, with a notable increase of ₹51,129 crore in just the last week.
Adani Total Gas is a leading energy and city gas distribution company, co-promoted by Adani Group and TotalEnergies. On November 28, the company announced the initiation of a pioneering ‘Green Hydrogen Production and Blending Pilot Project’.
As part of the project, the company said it will employ the latest technologies to blend green hydrogen (GH2) with natural gas for over 4,000 residential and commercial customers in Ahmedabad, Gujarat.
GH2 is produced using the electrolysis of water with electricity generated by renewable energy. Hydrogen blending is less carbon-intensive than burning gas but has the same heating capabilities.
Group m-cap jumped to ₹3.21 lakh crore
Last week, the combined market value of the ten listed companies increased by ₹3.21 lakh crore, bringing the group’s overall market capitalisation to ₹14,68,841 crore.
Also Read: Adani Group stocks jump up to 20%, market cap crosses ₹13 lakh crore; here’s why
This notable recovery comes after the group experienced a setback earlier in the year following a report by US short-seller Hindenburg Research claiming that the Indian giant had participated in a clear stock manipulation and accounting fraud scheme over decades.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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