Adani group’s marketcap rises by over ₹2 lakh crore in four days

• Adani group stocks rallied in the first half of trading on Friday after it announced a ₹15,446 crore deal with GQG Partners.
• Adani group’s combined market capitalisation increased by ₹81,980 crore on Friday.
• Adani Enterprises emerged as the top gainer on the Nifty50 index.
• Overall, the Adani group’s combined market capitalisation has increased by ₹2.07 lakh crore in the last four days.

Adani group stocks rallied in the first half of trading on Friday after US-based investment firm GQG Partners picked up stakes in four group companies for ₹15,446 crore on Thursday.

All the nine group company stocks closed the day higher, led by the flagship Adani Enterprises.

The rally in Adani group stocks has led to an increase of ₹81,980 crore in the group’s combined market capitalisation. Adani Enterprises alone accounted for over half of those gains, and also emerged as the top gainer in Nifty50.

The gains in Adani group stocks also contributed to bullish spirits on Dalal street on Friday – both Sensex and Nifty50 closed 1.5% higher.

This is the third consecutive day where all the Adani group stocks have gained. Adani Enterprises added ₹80,195 crore to its market capitalisation during this period.

At the end of trading on Friday, five of the nine group stocks were locked in their respective upper circuits, while Adani Enterprises was up by nearly 17%.

Overall, the Adani group’s combined market capitalisation has increased by ₹2.07 lakh crore in the last four days.

In spite of the spike, Adani group’s combined market capitalisation is still down by over 55%, or ₹12.2 lakh crore since the Hindenburg report was first released on January 24.


Source: NSE, as on March 3, 2023

SC forms a 6 member committee to probe the Adani Hindenburg issue

On Thursday, the Supreme Court formed a 6-member committee to investigate the recent Adani Group shares crash triggered by Hindenburg Research's fraud allegations and other regulatory aspects related to stock markets.

Markets regulator SEBI was also directed to look into the matter, and both the regulator and the committee were asked to produce their reports in two months.

"The Adani Group welcomes the order of the Hon'ble Supreme Court. It will bring finality in a time-bound manner. Truth will prevail," Gautam Adani, the chairman of the group said in a statement after the SC order.

‘Market mispricing Adani’, says GQG Partners founder Rajiv Jain

Rajiv Jain, the founder of GQG Partners spotted an opportunity to invest in the Adani group, saying that his investment firm had fact-checked the allegations made by Hindenburg Research in its January 24 report.

“That’s what makes a market, people have their opinions. We fact checked everything and we felt the market was mispricing Adani,” said Jain, according to a Financial Times report.

“The firm’s investment makes it a strategic investor,” said Adani group’s CFO Jugeshinder ‘Robbie’ Singh in a press release on the announcement.

India-born Rajiv Jain moved to the US in 1990 to pursue MBA. Four years later, he joined Swiss asset management firm Vontobel, becoming its chief investment officer in 2002.

Jain left Vontobel to start GQG Partners in 2016, and as of January 2023, the firm had assets worth $92 billion under its management. He’s known to bet large sums on individual stocks and quickly change course if required, according to a Bloomberg report.

Jain, who has three investigative journalists in his research team, said GQG was looking at the Adani group for over five years.

GQG Partners’ investment in Adani group:

Three Adani group stocks still down by over 70%

Three group stocks have lost over 70% of their value since January 24, while ACC and Adani Ports & SEZ have been the most resilient.

Adani stocks Rallied post GQC deal.The Elliottwave model shows the potential 5th wave still to unfold. $ADANIPOWER.NSE PS: - Do your own assessment. And manage Risk all the time.

— (@TrendonomicsHD) March 03, 2023

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