This Adani group stock has bounced back over 100% in three days

Shares of Adani Enterprises rallied 14 per cent to Rs 2,049.60 in Wednesday's intra-day trade, and have zoomed 102 per cent from its intra-day low of Rs 1,017.10 touched on Friday February 3.

Shares of Adani Enterprises moved higher by 14 per cent to Rs 2,049.60 on the BSE in Wednesday’s intra-day trade, extending its past two-day rally on the back of heavy volumes. In past three trading sessions, the stock of Gautam Adani group flagship company has been more-than-doubled. It zoomed 102 per cent from a low of Rs 1,017.10, touched on Friday, February 3, in intra-day trades.

At 11:46 AM; Adani Enterprises quoted 13.6 per cent higher, as compared to 0.77 per cent rise in the S&P BSE Sensex. A combined 10.7 million equity shares had changed hands on the NSE and BSE.

However, despite of a sharp pullback, the stock is still down 40 per cent from its price level of Rs 3,442.75 on January 24. It has halved or down 51 per cent from its all-time high price of Rs 4,189.55, touched on December 21, 2022.

On January 24, US-based investment research firm, Hindenburg Research, alleged that the Adani group had engaged in "a brazen stock manipulation and accounting fraud scheme". It also accused the conglomerate of improper use of offshore tax havens, and flagged concerns about the group’s high debt. Adani has denied the short seller's allegations. CLICK HERE FOR RELEASE

On January 31, the Adani group pulled off the Rs 20,000-crore follow-on public offering (FPO) of Adani Enterprises, given the unprecedented situation and the market volatility.

Meanwhile, the promoters of the Adani group have prepaid loans worth $ 1.11 billion on Monday, thus releasing the pledged shares in three key companies - Adani Green Energy, Adani Ports, and Adani Transmission.

The group said the promoters had posted the amounts to prepay $1.11 billion ahead of their maturity in September next year, after recent market volatility, and thus showing their commitment to reduce promoter leverage backed by listed-company shares. CLICK HERE FOR FULL REPORT

In another development, global rating agencies Fitch and Moody's on Tuesday said that Indian banks' exposure to Adani Group companies is not that large to significantly risk their credit profile.

According to Moody's, the group's access to funding from international markets can be curtailed because of heightened risk perception. In that case, domestic banks may become the main source of funding for the group.

Commenting on risks, Fitch said loans involving projects under construction and those at the company level could have greater vulnerability. However, even if exposures were entirely provisioned for it would not impact Indian banks’ viability ratings as lenders have enough headroom at their current rating levels, the rating agency said. CLICK HERE FOR FULL REPORT

The board of directors of Adani Enterprises are scheduled to meet on Tuesday, February 14, 2023 to consider and approve the unaudited financial results of the company for the quarter and nine months ended December 31, 2022.

Adani Enterprises operates as an incubator, establishing new businesses in transport and logistics, and energy & utility sectors. Adani Enterprises is leading the decarbonization initiative of industries and mobility through Adani New Industries Limited (ANIL). Other next-generation Adani Enterprises’ strategic business investments are centered around airport management, roads, data center and water infrastructure.