Adani Group shares hit new highs on fundraising plan

Shares of the Adani group companies led by Gautam Adani continued their upward trajectory with Adani Enterprises and Adani Green Energy reaching lifetime highs after these two companies along with Adani Transmission announced plans to raise funds.

The Boards of Directors of these three companies are scheduled to meet on Friday 8 April 2022 to consider and approve a proposal to raise funds by way of rights issue or preferential allocation, including placement to eligible institutions or through any other permitted method and/or a combination of both.

These companies said in their exchange file that the fundraising is subject to all regulatory/legal approvals that may be required including that of the company’s shareholders.

As of 09:45 am, Adani Enterprise after hitting Rs 2,164 is up 0.4 per cent at Rs 2,150 in BSE. Adani Green made a gain of Rs 2,250 and was up 1.2 per cent at Rs 2,215. Adani transmission touched a high of Rs 2,471 but was down 0.1 per cent at Rs 2,446.

Among other Adani Group shares, Adani Power also hit a new record high of Rs 244.50, up 5 per cent on the Bahrain Stock Exchange in Wednesday’s trading through Wednesday. In the past month, the stock is up 102 percent, compared to 10 percent in the S&P Sensex Index.

Adani Power reported a consolidated net profit of Rs 218.49 crore for the third quarter of FY22 (Q3 FY22). The company incurred a loss of Rs 288.74 crore while the total income was Rs 5,593.58 crore as compared to Rs 7,099.20 crore in the same period last year.

According to a report by PTI, India’s energy consumption grew steadily to 126.12 billion units (BU) in March, up 4.6 percent year-on-year. The surge in energy consumption reflects the effect of the early start of summer and the easing of lockdown restrictions by states.

Adani Wilmar (AWL) was also 5 per cent higher at Rs 609, also a new high in BSE, and it was up 68 per cent in the last month. AWL has a leading position in the market across kitchen essentials: branded edible oil, wheat flour, rice, etc., with a large household reach. Its growth strategy is to increase market share in existing categories, diversify into more FMCG segments, pursue strategic acquisitions (product expansion/geographic reach) and improve profit margin/return in the medium term.

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