Adani Group’s market capitalization surged by almost Rs.73,000 crore on 4th Dec, driven by investor enthusiasm following BJP’s electoral victories in three states, infusing confidence in continued political stability at the Centre. The Gautam Adani-led conglomerate’s market value approached the Rs.12-trillion milestone, marking substantial gains in the past week.
An analyst explained that, “Recent state election outcomes have alleviated two significant concerns for the Adani Group. The increased likelihood of the BJP securing a third consecutive victory next year provides greater certainty. Additionally, optimism arose from last week’s Supreme Court proceedings, indicating no adverse findings against the group”.
Adani Enterprises and Adani Ports & SEZ witnessed a 7% and 6% surge in shares, respectively. Adani Green’s stock closed with a 9.5% gain, while Ambuja Cements and ACC experienced a 7% and 6% upswing. Experts highlight the Adani group’s appealing prospects, attributing it to effective debt reduction efforts and improved growth potential.
Experts suggest that the group’s endeavors to reduce leverage and enhanced growth prospects position it as an appealing investment.
Adani Group CFO Jugeshinder Singh stated in Mumbai last week that the conglomerate aims to increase investments, planning a Rs.7 trillion expenditure on infrastructure in the next decade. As of January 24, the group’s market capitalization was approximately Rs.20 trillion. However, after allegations from US-based Hindenburg Research, the market cap plummeted by over Rs.12 trillion. Currently, it stands at about Rs.7.25 trillion, below the pre-report level. The Supreme Court of India, last month, reserved its order on investigations led by the Securities and Exchange Board of India (SEBI) into the matter.
In the court session, the Supreme Court emphasized that reports and conclusions from newspapers and online platforms do not undermine SEBI and its investigation, as they lack standing as evidence. The expert committee’s May report, commissioned by the Supreme Court, affirmed the absence of regulatory failure and identified “no evident pattern of manipulation” in Adani firms. SEBI informed the court that investigations in 22 out of 24 matters had been concluded.
