Market capitalisation of Adani Group surged over Rs 50,000 crore in a day

On the,  market capitalisation of the Adani Group, led by billionaire Gautam Adani, witnessed a significant increase of Rs 50,452 crore. The combined market capitalisation of the group’s 10 companies reached approximately Rs 10.6 lakh crore, compared to Rs 10.1 lakh crore on Monday, as stated by the group. This surge resulted in a substantial windfall gain for the shareholders.

Adani Green Energy Ltd., Adani Total Gas Ltd., and New Delhi Television Ltd. took the lead, reaching their upper circuit limits.

Adani Green Energy witnessed an impressive surge of 10%, closely followed by Adani Power Ltd. with a rise of 9.2%. Adani Enterprises Ltd., the group’s flagship company, also saw a noteworthy increase of 2%, bringing its market capitalisation to Rs 2,81,050 crore.

Company Name	Closing Price on 25 July (Rs)	M Cap as on 24 July (Rs Cr)	M Cap as on 25 July (Rs Cr)	M Cap Change (Rs Cr)	% Change
Adani Greens Energy	1,089.2	1,56,843.0	1,72,525.0	15,682.0	10.0%
Adani Power	260.0	91,814.0	1,00,261.0	8,447.0	9.2%
Adani Transmission	834.8	86,272.0	93,121.0	6,849.0	7.9%
Adani Total Gas	662.5	69,393.0	72,857.0	3,464.0	5.0%
NDTV	238.8	1,466.0	1,539.0	73.0	5.0%
ACC	1,892.0	33,886.0	35,528.0	1,642.0	4.8%
Adani Wilmar	416.7	51,818.0	54,151.0	2,333.0	4.5%
Ambuja Cements	440.3	83,903.0	87,418.0	3,515.0	4.2%
Adani Ports	749.4	1,58,781.0	1,61,870.0	3,089.0	1.9%
Adani Enterprises	2,465.4	2,75,692.0	2,81,050.0	5,358.0	1.9%
		10,09,868.0	10,60,320.0	50,452.0

The concerns raised by the Hindenburg issue have receded, and now the market is evaluating the group based on its financial performance, as analysts anticipate. Also, market experts attribute the surge in stock prices to a notable increase in interest from domestic investors. 

Undoubtedly, there is considerable interest from investors, including retail investors, high-net-worth individuals (HNIs), and family offices. Moreover, the market is aligning with the strong fundamentals of the Adani Group companies.

Furthermore, the US-based investment firm GQG Partners has made three separate investments in Adani Group companies over the past five months. In March, they initially invested USD 1.87 billion in four group companies, followed by additional open market purchases of approximately USD 500 million in May. Subsequently, in late June, GQG acquired another USD 1 billion worth of stocks in several Adani Group companies.

Following the Gautam Adani-controlled conglomerate’s strategic move to sell stakes in various firms and reduce debt, the shares of most group companies have experienced a rebound from their lows. However, despite the recovery, the shares are still down by approximately 1% to 83% compared to their value on January 24, 2023, which was when the Hindenburg report led to widespread selling in these stocks.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.