Adani Enterprises shares gain as Adani group stock moves out of short-term ASM

Shares of Adani Enterprises jumped nearly 2 per cent in Friday's trade after stock exchanges BSE and NSE removed the securities of the Adani group flagship from the short-term additional surveillance measure (ASM) framework. Adani Enterprises was put under the short-term additional surveillance framework on May 24.

The stock rose 1.71 per cent to hit a high of Rs 2,535 on BSE. With this, the scrip has rebounded 149.23 per cent from its 52-week low of Rs 1,017.10 hit on February 2. It however, still needed a 65 per cent rally, to revisit its 52-week high of Rs 4,189.55. The Hindenburg Research's allegations on Adani group companies hit the company's market capitalisation earlier this year. It led the company to withdrew its Rs 20,000 crore follow-on public offer. Later the company sell Rs 5,460 crore worth stake to GQG Partners.

In two separate circulars, the stock exchanges said that the securities of Adani Enterprises' securities will be excluded from the framework effective from June 2. In their circulars issued last month, the exchanges said, "applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to a maximum rate of margin capped at 100 per cent, with effect from May 26, 2023 on all open positions as on May 25, 2023 and new positions created from May 26, 2023."

Adani Enterprises reported a 138 per cent rise on a year-on-year (YoY) rise in the consolidated net profit at Rs 722.48 crore for the Mach quarter, helped by a strong performance at its key coal trading division. The company had clocked a net profit at Rs 304.32 crore in the same quarter previous year. Its consolidated revenue from operations increased over 26 per cent to Rs 31,346.05 crore in the March 2023 quarter from Rs 24,865.52 crore in the March 2022 quarter.

Data showed mutual funds held 1,16,50,252 shares, or 1.02 per cent stake, in Adani Enterprises as of April 30. This was against 97,51,468 shares, or 0.86 per cent stake,they held in the Adani flagship as on March 31. In value terms, fund managers held Rs 2,242.62 crore worth the Adani group's flagship against Rs 1,706.95 crore in March.

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