The Adani Group has witnessed a remarkable rebound, with its market capitalization reaching Rs 14.4 lakh crore and set to touch Rs 15 lakh crore (almost $180 billion). From December 1 to December 8, the market cap surged by Rs 3.15 lakh crore ($37.7 billion), marking the highest weekly rise in 2023. Notably, Adani Green Energy recorded the highest gain of Rs 83,000 crore after securing $1.36 billion in construction facilities. The recovery signals the end of a challenging year for Chairman Gautam Adani, who faced attacks on the group's stocks following accusations of stock manipulation and accounting fraud by Hindenburg Research. Despite losing over $150 billion in market value, Adani displayed resilience, countered allegations, sold shares to investors like GQG and Abu Dhabi's International Holding, and repaid loans. The Adani portfolio's robust financial performance in H1 FY24, with a 47% YoY increase in EBITDA to Rs 43,688 crore ($5.3 billion), further boosted investor confidence. The strategic investments in core infrastructure businesses, including utilities, transport, and other ventures, contributed significantly to this growth. The Adani Group's response to attacks by short sellers not only thwarted their intended impact but also strengthened the group's position, earning accolades as the best all-round wealth creator in Motilal Oswal's rankings for 2018-2023.
Key Points:
1. Adani Group's market capitalization has surged from Rs 11.22 lakh crore to Rs 14.4 lakh crore, nearing $180 billion, as of December 8, 2023.
2. In the trading week ending on December 8, the group's market cap increased by Rs 3.15 lakh crore ($37.7 billion), marking the highest weekly rise in the current year.
3. Adani Green Energy witnessed the most significant weekly gain of Rs 83,000 crore, securing $1.36 billion in construction facilities from international banks.
4. Adani Enterprises, the flagship company, gained over Rs 52,000 crore during the same period, while Adani Total Gas and Adani Ports and Special Economic Zone recorded market cap increases of Rs 50,000 crore and Rs 42,000 crore, respectively.
5. Despite facing challenges, including accusations of stock manipulation and accounting fraud by Hindenburg Research, Gautam Adani displayed resilience, denying allegations and implementing strategies to restore investor trust.
6. Adani Group successfully countered attacks by selling shares to investors like GQG and the Abu Dhabi conglomerate International Holding and repaying loans backed by stock.
7. Despite the Hindenburg Research and OCCRP reports affecting the group's growth and valuations, the backing of TotalEnergies, Wilmar International, and global banks, including Standard Chartered and Singapore’s DBS, remained steadfast.
8. The U.S. government's investment in APSEZ’s Colombo port project provided a crucial endorsement, contributing to the group's resilience.
9. Adani's portfolio demonstrated robust financial performance in the first half of fiscal year 2024, with a 47% YoY increase in portfolio level EBITDA to Rs 43,688 crore ($5.3 billion).
10. The Supreme Court's reserved order on the Adani-Hindenburg case triggered a market rally, and Group CFO Jugeshinder Singh announced plans for a Rs 7 lakh crore investment over 10 years, reinforcing Adani Enterprises Ltd as the best all-round wealth creator. Despite short-selling attacks, the Adani Group emerged stronger and more resilient.
(With Agency Inputs)
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