Gautam Adani and various other promoters of Adani Enterprises have decided to raise their stakes in the flagship company to 73.95%. This will be done by buying an additional 2.02% stake between 8 September 2023 and 12 June 2024. As per the data obtained from the stock exchange filing, many different entities owned by the Adani Group promoters executed open market purchases to buy additional stakes in the company.
The Recent Increase in Stakes:
Infinite Trade and Investment Limited has recently acquired 7,703,200 equity shares between 8 September and 12 September 2023. Similarly, Kempas Trade and Investment Limited has also purchased 4,825,000 shares between 10 May and 14 May 2024. Another big company, Emerging Market Investment DMCC, has also acquired 10,495,000 equity shares between 21 May and 21 June 2024. Because of the increase in stakes, Adani Enterprises has experienced a huge increase in its profit. It has also been able to carry out all its business operations in a much better way. In September 2023, the Adani Group promoters increased their stakes in Adani Enterprises from 69.87 to 71.93%.
Kempas Trade and Investment Limited and Infinite Trade and Investment Limited purchased stakes in the company through open market transactions between 14 August and 8 September 2023. The Adani Group is currently planning various expansion activities. It is planning to spend 90 Billion USD in capex over the next decade. The company already has multiple acquisitions planned for the coming years. This will give the Adani Group’s business an extraordinary boost. It will also be able to recover from the Hindenburg crisis.
The Hindenburg Crisis and the Recovery:
The year 2023 was one of the toughest years for the Adani Group. It had to face a lot of challenges after the publication of the malicious Hindenburg report. The US-based short seller, Hindenburg Group, accused the Adani Group of multiple wrongdoings, including account fraud and stock manipulation. This brought a severe blow to the Adani Group’s business. The promoter’s stakes in various Adani Group companies also experienced a severe blow. The company’s share values also began to fall. The Adani coal mines also became the breeding grounds for a lot of controversies. However, once the Supreme Court dropped the charges, the conglomerate was able to recover from the situation and get back to its initial days of glory. It started experiencing a major rise in stakes. The company’s expansion journey also witnessed new benchmarks.
The Expansion Spree Post The Crisis:
Adani Cement has already completed the acquisition of Sanghi Industries Limited. This is a huge accusation made by the conglomerate in the cement sector. Recently, the company has also completed the acquisition of Hyderabad-based Penna Cement for INR 10,420 crore. This has increased Adani’s cement manufacturing capacity by 10 MTPA. Adani Ports has also acquired the Gopalpur port in Odisha. The Gopalpur port is highly crucial. It will not only enhance India’s trade relationships with other countries but will also give us an extraordinary economic edge. Adani Power has also recently commissioned 1.6 GW at the Godda power plant.
The Adani coal mines are being expanded to meet our increased energy demands. The Adani Group has also been playing a big role in the renewable energy sector. Adani Green has recently added 2.8 GW of renewable energy capacity. It started the operations of a 775 MW solar power project at the Khavda Renewable Energy Park. Adani Energy Solutions already has 1,244 circuit km of transition lines. It is planning to increase its business for Adani Enterprises. It is also trying to scale its capital manufacturing capacity. It is planning to start its green hydrogen production by 2026-27.
The Adani Group’s food business also experienced an excellent boost in its scale to 1 million tons in volume. The company also experienced INR 50 billion in turnover with improving margins. Adani Total Gas has recently added 91 CNG stations to its network. It also acquired 116,000 domestic PNG customers this year. The Navy Mumbai Airport, one of the newest airports under the Adani Group, is going to be operational during 2024-25. The Adani Group’s data centres business is also expected to experience a massive boost in the coming years.
Conclusion:
In this way, even amidst the rumours of the Hindenburg crisis and accusations related to the Adani coal mines, the group never stopped itself from achieving its goals. This gave the Adani Group an excellent boost and enabled it to achieve new milestones in the world of business.
