Adani Transmission is now worth over ₹2 lakh crore four months after analysts warned of speculative trading

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Adani Transmission is now worth over ₹2 lakh crore four months after analysts warned of speculative trading
BCCL
  • Shares of Adani Transmission rallied 331% in 2021 so far to be valued at ₹2 trillion.
  • It is said to be one of the largest private sector power transmission companies in India with a presence across the western, northern and central regions of India.
  • Another Adani Group company closest to the 2 trillion mark is Adani Green Energy.
  • In May 2021, analysts at CLSA said the stock is driven by speculation, rather than interest from a large number of investors, because very few shares are actually traded while most are held by foreign investors that are common across Adani Group.
  • Check out the latest news and updates on Business Insider.
Continuous rally in the shares of Adani Transmission ⁠— the electricity distributor to 3 million Mumbai homes at the end of March 2021 ⁠— became the first Adani Group company to cross ₹2 lakh crore (nearly $28 billion) mark in terms of market capitalisation.

Shares of the power transmission and distribution company rallied 91% in the last month and 331% in 2021 so far. And, one of the big reasons for the rally is that there are very few shares up for grabs in the market.

In May 2021, CLSA had reportedly dropped coverage on the company saying that the stock is driven by speculation and not because the trading volumes are huge, which would reflect interest from a large number of investors. The stock has risen by 7% since then.

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Adani Transmission is now worth over ₹2 lakh crore four months after analysts warned of speculative trading
Flourish chart/BSE data

The company has 319.58 million free floating shares for investors to trade in the market out of 1.10 billion. According to CLSA, less than 5% of these shares were actually being traded. “81% (of the non-promoter shareholding) is owned by closely-held foreign investors-which are common across the Adani Group and hardly liquid,” CLSA reportedly said.

Another Adani Group company closest to the 2 trillion mark is Adani Green Energy. Recently, the renewable energy major raised $ 750 million through sale of green bonds. The renewable energy company has been a hot stock given the government’s efforts to reduce reliance on oil and gas imports by looking at alternate clean energy.

Adani Transmission is now worth over ₹2 lakh crore four months after analysts warned of speculative trading
Flourish chart/BSE data

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All Adani Group companies are valued at over ₹1.5 lakh crore except Adani Power.
Adani group companiesMarket cap
Adani Enterprises₹1,68,776 crore
Adani Green Energy₹1,88,346 crore
Adani Ports & SEZ₹1,52,069 crore
Adani Transmission₹2,06,093 crore
Adani Total Gas₹1,51,009 crore
Adani Power₹37,990 crore

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