Here's why investors are again keen on Adani Group companies

Developments related to the Adani Group are generally quick and significant. If the decline following the publication of the Hindenburg report on January 23 was sharp—the group’s overall worth plummeted by more than $100 billion in just a matter of days— the recovery, partial as of now, has been equally swift.

Shares of all 10 listed firms of the group are currently trading higher than their respective 52-week lows touched in February. For instance, shares of Adani Enterprises, at Rs 2,039.65 on March 8, have more than doubled from their recent low. Experts attribute the recovery to several factors, including GQG Partners putting in over `15,000 crore and the Supreme Court bringing in clarity in terms of a time-bound probe into the allegations. “Post validation of the investor putting in over Rs 15,000 crore, the touch-me-not attitude has been removed,” says Arun Kejrwial of Kejriwal Research & Investment Services.

Analysts say the market has taken solace from the fact that the money that has come to the promoter entities from the GQG transaction has been immediately deployed to reduce the group’s loan burden and release pledged shares. Earlier this month, the group said it had repaid share-based financing of Rs 7,374 crore and prepaid the debts of $500 million (nearly Rs 4,100 crore) it had taken to finance the acquisition of Ambuja Cements. More importantly, it said that it would be prepaying all such remaining loans by end-March. Unsurprisingly, shares of some of the Adani Group firms have been hitting upper circuits regularly.