Adani Enterprises trades in red as investors rush to book profit

Shares of Adani Enterprises Ltd fell 1.5 percent on June 30 as investors rushed to book partial profit following sharp gains last session.

The stock gained 5.7 percent on June 28 after promoter entity SB Adani Family Trust sold a 1.57 percent stake in the company.

The SB Adani Family Trust sold shares at an average price of Rs 2,300 each, amounting to a total of Rs 4,140 crore. Gautam S Adani and Rajesh S Adani, acting on behalf of the SB Adani Family Trust, held a total of 59.13 crore shares, representing a stake of 51.87 percent in the company as of March 2023.

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It has been a rough start to the year for the port-to-power conglomerate after Hindenburg Research, a US-based short-seller, released a scathing report alleging the Adani Group flagship of brazen stock manipulation and accounting fraud. The report added that the company is “pulling the largest con in corporate history”.

Since the Hindenburg report, the market capitalisation of Adani Group companies declined nearly Rs 1 lakh crore in sync with a significant correction in the stock market. When trading resumed the next day, the Adani Group shares continued to be hammered, leading to a two-day loss of Rs 4 lakh crore.

To restore investor confidence, Adani Group has repaid loans worth $2.6 billion to trim the overall debt of the company. Boutique investment firm GQG Partners LLC, led by veteran investor Rajiv Jain, has increased its ownership stake in Gautam Adani’s conglomerate by approximately 10 percent. The US-based firm also plans to participate in the conglomerate’s future fundraising activities, emphasising its confidence in what Jain describes as “the finest infrastructure assets available in India”.

In the fourth quarter of FY23, the company recorded an increase in profit of 137 percent, reaching Rs 722 crore, compared to Rs 304 crore in the same quarter last year.

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