Rs 2.2 lakh crore gain in 6 days! Why Adani stocks are rallying non-stop

NEW DELHI: Amid a spate of positive news flow in favour of the conglomerate, Adani stocks on Wednesday rallied for the sixth consecutive day today, with most stocks in green zone despite a weaker sentiment in the market.

In the morning, 3 Adani stocks - Adani Green, Adani Total Gas and Adani Transmission - were locked in 5% upper circuit limits today. Adani Power was up 4%, while the group's flagship entity Adani Enterprises was trading 2% higher.

The combined market value of all 10 Adani stocks rose over Rs 17,000 crore to cross the Rs 9 lakh crore market capitalisation.

In the last 6 trading sessions, Adani bulls have been left richer by Rs 2.2 lakh crore.

The bounce back in Adani stocks comes after the Hindenburg report powered bears and led to counters crashing up to about 80%.

Adani Group had yesterday announced prepayment of share-backed financing of Rs 7,374 crore ahead of its latest maturity in April 2025. Promoter leverage has now been reduced in Adani Ports, Adani Enterprises, Adani Transmission and Adani Green Energy.

"Along with the repayments done earlier in February, Adani has prepaid $2,016 million of share-backed financing, consistent with promoters’ commitment to prepay all share-backed financing before 31 March 2023," Adani said.

The Ahmedabad-based apples-to-airport group has been trying to soothe investor nerves by holding investor roadshows as well. The biggest boost came from a Rs 15,000 crore investment by US-based GQG Partners, which bought stakes in 4 Adani firms from the promoters.

Rajiv Jain, Co-founder of the fund, said his bet on Adani stocks is a multi-year investment as he sees at least 20 years of earnings visibility.

"I thought there was a kind of a mismatch between how people look at classic PE type stuff, which is not really that sort of relevant in the stage these companies are at," Jain said. He had described the airport, port and energy assets owned by the Adani companies as “fantastic,” “irreplaceable” and available at a good price.