Adani Group stocks: Adani Enterprises, Adani Transmission, Adani Green, Adani Total to be on investors’ radar

The billionaire Gautam Adani-led ports-to-energy conglomerate stocks have undergone a heavy beating since the beginning of this year after US short-seller Hindenburg Research released a report in January alleging accounting fraud and stock price manipulation at Adani Group. 

The report triggered a stock market rout that had erased about $45 billion in the conglomerate’s market value at its lowest point.

Let us take a look at the Adani groups stocks that will be in focus on Monday:

₹21,000 crore-worth fundraising

Adani group will raise ₹21,000 crore through share sale in its two companies. The move comes three months after Adani Enterprises, the group’s flagship firm, was forced to abort a ₹20,000 crore follow-on public offering (FPO) in the wake of the Hindenburg report.

Adani Enterprises plans to raise ₹12,500 crore through issue of shares to qualified institutional buyers, the company said on Saturday.

The company’s board approved “raising of funds by way of issuance of equity shares having face value of ₹1 each of the company and / or other eligible securities or any combination thereof, for an aggregate amount not exceeding ₹12,500 crore or an equivalent amount thereof by way of qualified institutional placement (QIP) or other permissible mode in accordance with the applicable laws,” the stock exchange filing read.

Adani Transmission, the electricity transmission company, will raise another ₹8,500 crore by way of QIP, it said in a separate filing.

Read here: Adani Transmission board approved fund raise worth not exceeding ₹8,500 crore. Details here

Moreover, the board of renewable energy arm, Adani Green Energy Ltd too was scheduled to meet on Saturday for a fundraise but the meeting was postponed to May 24.

The fundraising plan seems to be a strong comeback strategy by the group after the group’s FPO was scrapped amid the Hindenburg report-led rout in the stock prices.

However, Adani Group has denied all allegations by Hindenburg. The group is also said to plot a comeback strategy, wherein it aims to prepaid some of its loans to assuage investors. In March, the company’s promoters sold stakes worth ₹15,446 crore in four group companies to GQG Partners, a US-based global equity investment firm.

Meanwhile, Mauritius Financial Services Minister Mahen Kumar Seeruttun also refuted the allegations labelled by the Hindenburg Research report about the shell companies operating in the island nation.

3 Adani Group stocks to be out of ASM framework

Adani Green Energy, Adani Total Gas and Adani Transmission shares will be excluded from Additional Surveillance Measure (ASM) framework by the stock exchanges BSE and NSE.

As per the circulars issued by the bourses, these shares will move out of the ASM framework effective May 15.

The BSE and NSE had moved Adani Total Gas and Adani Transmission from second to the first stage of the long-term ASM framework on March 24. Adani Green Energy was also moved to the first stage long-term ASM framework by the exchanges in April.

Exclusion from MSCI India Index

Morgan Stanley Capital International (MSCI) announced that it will remove Adani Total Gas and Adani Transmission from its India Standard Index with effect from May 31. MSCI Standard Index is widely used by fund houses as a benchmark for its equities portfolios.

The exclusion from the index is likely to result in an outflow of $201 million for Adani Transmission and $186 million for Adani Total Gas.

Following the announcement, the two Adani Group shares were hammered by investors on Friday. While Adani Total Gas stock price plunged 4.33% to close at ₹818.35 apiece, Adani Transmission share price ended 3.49% lower at ₹885.00 on the BSE.

SC order in Adani vs Hindenburg case on Monday

A special bench of the Supreme Court on Friday decided to pronounce orders on the Adani Group vs Hindenburg Group case on May 15 after examining the Expert Committee Report.

Read here: ‘Will extend time for probe, but..’: What SC told SEBI during Adani Group-Hindenburg report hearing

The Supreme Court of India also told capital market regulator Securities and Exchange Board of India (SEBI) that they will grant an extension of three months to finish probe into stock manipulation by Adani group allegations made by the US short-seller Hindenburg in its report.