BackAdani Group shares rise on Narendra Modi win hopes
Shares of Adani Enterprises rise as much as 7.6%, Adani Ports jump 4.79% and Adani Power up 2.64%
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Mumbai: Shares of Adani Group companies rose on Wednesday on hopes that Narendra Modi-led Bharatiya Janata Party (BJP) may form the next government.
Adani Enterprises Ltd’s stock rose as much as 7.6% on BSE, while Adani Ports and Special Economic Zone Ltd and Adani Power Ltd gained as much as 4.79% and 2.64%, respectively.
Since 14 February, Adani Enterprises has risen 104.77%, while Adani Ports has risen 32.04% and Adani Power, 64.44%.
The 30-share benchmark Sensex was trading marginally higher 22,489.08 points.
Billionaire infrastructure-builder Gautam Adani’s rapid ascent to the top tier of Indian business is often associated with the rise of Modi, the Hindu nationalist opposition leader expected to become India’s next Prime Minister once the country’s election ends next month, Reuters reported on 11 April.
Based in Gujarat, Adani’s businesses has benefitted from Modi’s emphasis on economic development, but the tycoon bristles at the notion that he has been granted undue favours, Reuters reported.
“Crony capitalism should not be there. I definitely agree with that. But how you define crony capitalism is another issue," Adani, 52, said in a recent interview to Reuters in his office in Ahmedabad.
Adani Ports is also expected to close the acquisition of Dhamra Port Co. Ltd for ₹ 5,000 crore. Dhamra Port is an equal joint venture of Larsen and Toubro Ltd (L&T) and Tata Steel Ltd. At present, Adani Ports has been appointed as a management consultant and this is the first time in India a potential acquirer is coming on board at a target company ahead of an acquisition.
In the December quarter, Adani Enterprises Ltd’s consolidated net profit was ₹ 68.20 crore, down 83.6% on year while Adani Ports consolidated net profit was ₹ 450.51 crore, up 24.8%. Adani Power reported consolidated net loss of ₹ 544.82 crore compared with a net loss of ₹ 642.84 crore last year same quarter
On September 2013 (the latest data available), Adani Enterprises Ltd’s total consolidated debt was ₹ 70,681.20 crore while Adani Ports total consolidated debt was ₹ 12,164.23 crore. Adani Power’s consolidated debt was ₹ 40,608.55 crore.
Reuters contributed to this report.
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