After tanking several points in the past few days, stocks of Adani Group companies have staged a recovery and rallied off their 52-week lows. Billionaire Gautam Adani-led group company’s stocks extended rose as investor sentiment got a boost from the conglomerate’s move to repay borrowings early and free up share pledges besides giving assurances about cutting debt further.
Six of the 10 Adani stocks jumped between 5 per cent to 20 per cent on Wednesday, which helped the conglomerate regain Rs 49,000 crore in market value. The group’s market capitalisation rose by as much as Rs 12,190 crore on Tuesday alone, marking the first rise since the sell-off began on January 25, day after Hindenburg Research released its report.
After touching a new 52-week low of Rs 1,017.45, shares of Adani Enterprises have rebounded over 113 per cent, NDTV stock has recovered over 100 per cent, Adani Power around 71 per cent, Adani Wilmar 54 per cent, Ambuja Cements 54 per cent, ACC 16 per cent and Adani Transmission stock has bounced back 10 per cent.
The shares, however, declined again on Thursday, February 9, after index provider MSCI said it will conduct a free-float review of the conglomerate’s securities. Adani Enterprises tanked over 11 per cent while Adani Ports and SEZ fell nearly 3 per cent. Adani Green and Adani Transmission stock slipped 5 per cent, Ambuja was down nearly 8 per cent.
Earlier on February 2, Adani Enterprises announced the withdrawal of its recently-concluded Rs 20,000 crore Follow-on Public Offer (FPO), India’s largest, following unprecedented market volatility.
“Given the unprecedented situation and the current market volatility the Company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction,” the company had said in the BSE filing.
Adani Group chairman Gautam Adani, while explaining the decision to call off India’s biggest FPO, said that the “interest of my investors is paramount and everything is secondary”.
