Shares of various Adani Group firms witnessed a robust surge of nearly 6% in the morning of January 29, fueled by multiple factors, with the flagship Adani Enterprises leading the way. The notable uptick in Adani stocks is attributed to ongoing discussions about the conglomerate’s plans to raise up to $3 billion through collaborations with global private equity firms and Indian banks.
Adani Enterprises, the frontrunner in this rally, experienced a significant boost of over 5%, reaching an intraday high of Rs 3,050 on the National Stock Exchange. This surge followed Cantor Fitzgerald’s initiation of coverage on the stock with an “overweight” call. The international brokerage firm highlighted the pivotal role played by Adani Enterprises in fulfilling India’s economic growth aspirations, deeming it a unique long-term investment opportunity. Cantor Fitzgerald set a target price of Rs 4,368 for Adani Enterprises, emphasizing the attractive risk/reward profile at current levels.
The brokerage firm acknowledged Adani’s strategic measures to mitigate liquidity risks, enhance governance, and increase transparency. Cantor Fitzgerald asserted that Adani is “too big to ignore,” emphasizing the symbiotic relationship between Adani and the country’s economic trajectory.
Adani Enterprises is approaching levels seen before the Hindenburg research report, which negatively impacted the group’s stocks almost a year ago. The report, authored by an American short-seller, alleged stock manipulations and other irregularities, leading to a significant downturn in several group stocks.
Among the Adani Group stocks, Adani Energy Solutions recorded a 5% increase following the incorporation of its wholly-owned subsidiary, Adani Energy Solutions Step-Twelve Limited (AESSTL). Adani Power saw a rise of over 3% after a 50:50 joint venture, AdaniConnex (ACX), signed a contract to acquire a 100% equity stake in two wholly-owned subsidiaries of Adani Power.
Adani Ports, up around 4% in morning deals, is set to announce its Q3 results on February 1. Additionally, Adani Green Energy, Adani Total Gas, and Adani Wilmar witnessed jumps of over 3%. Other Adani Group firms, including ACC, Ambuja Cement, and NDTV, also traded with gains exceeding 2%.
The surge in Adani stocks follows reports of the conglomerate engaging in discussions with global private equity firms and Indian banks to secure $3 billion in funding over the coming months. This development has instilled confidence in the market, signifying a positive outlook for Adani Group stocks.
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