Adani's stock resulting in a significant increase in the group's market value by Rs 1.7 lakh crore.
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Following inspiration from American short-seller Hindenburg, greedy bears savagely rampaged billionaire Gautam Adani's empire, Adani stocks are coming back with a bang amid a flurry of good news flow.
The combined market value of all ten Adani stocks increased by Rs 1.73 lakh crore in the last four trading sessions to Rs 8.55 lakh crore.
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Adani Enterprises, Adani's flagship firm, topped the rally with a huge 57.5% increase in just four trading days. On the BSE, the Nifty closed 17% higher on Friday at Rs 1,879.35.
All the other nine equities have also surged in the previous four days, making this the strongest period for the Ahmedabad-based tycoon since the release of the Hindenburg report in late January.
The rise comes after Adani stocks were wiped off for Rs 12 lakh crore. Notwithstanding the recent recovery, Adani's total market value is still down 55% from before the report's release.
Adani Total Gas shares have suffered the most, with the once-high-flying stock down 80% from its 52-week high.
The rise began when Adani Group managed to persuade investors at roadshows this week in Singapore and Hong Kong about the health of its companies, the ability to honor debt obligations in the coming years, and the ability to create cash.
The transaction will assist the promoter group in generating cash to reduce part of its debt, which has become a major concern for investors. In the short run, the price at which GQG purchased the stocks has served as a bottom for traders.
GQG, which is controlled by NRI investor Rajiv Jain, has made a notional profit of Rs 3,102 crore in just two days.
As investors felt more confident in the group's ability to repay debt, the rise had a knock-on effect on PSU bank equities as well as those of Life Insurance Company of India (LIC).
According to valuation expert Aswath Damodaran, the apples-to-airport business has roughly three times as much debt as it should. Damodaran has stated that reducing its debt load would not only lessen its chance of failing but would also lower its cost of financing.
Meanwhile, rating agency ICRA has downgraded Adani Ports and Adani Total Gas from "stable" to "negative," while confirming the ratings.┬а
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