Adani Power shares snap two-day losing streak post 8.1% stake sale

Shares of Adani Power Ltd rose over 3% in early trade today as promoters sold 8.1% stake to Rajiv Jain-led GQG Partners on Wednesday. The Adani Power stock snapped two days of losing streak today. Shares of Adani Power zoomed 3.23% per cent to Rs 288.45 in early trade today. Market cap of the firm rose to Rs 1.09 lakh crore. The firm saw 11.17 lakh shares changing hands amounting to a turnover of Rs 31.92 crore on BSE.   

The share hit a 52-week high of Rs 432.80 on August 22, 2022.  

In terms of technicals, the relative strength index (RSI) of Adani Power stands at 60.1, signaling it's trading neither in the overbought zone nor in the oversold zone. The stock has a beta of 1.1, indicating high volatility in a year. Adani Power shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.    

Adani Power shares have lost 25.58% in a year and fallen 5% in 2023. However, the stock has zoomed 664% in three years.   

According to the bulk deal data, the US-based boutique investment firm purchased 31.2 crore equity shares of Adani Power for more than Rs 9,000 crore ($1.1 billion). 

Promoter Adani family held 74.97 per cent, or 289.16 crore equity shares in the utility company. It sold an 8.1 per cent stake, or 31.2 crore equity shares, at an average price of Rs 279.17 per share. 

Of late, Jain's investment firm has been interested in the shares of Adani Group companies. The marquee investor has been shrugging off the damning report from Hindenburg, the US short seller, to invest in billionaire Gautam Adani's group. Adani Power has become the fourth entity from Gautam Adani's ports-to-energy conglomerate where GQG has invested since May.  

Adani Power reported a 83.25 percent rise in consolidated net profit for the quarter ended June 2023 at Rs 8,759.42 crore against Rs 4,779.86 crore reported in the June quarter of last fiscal, led by massive other income. 

However, revenue from operations slipped to Rs 11,005.54 crore, down 19.80 percent from Rs 13,723.06 crore during the corresponding quarter of last fiscal.  

Other income zoomed to Rs 7,103.47 crore and included one-time recognition of prior period regulatory revenue amounting to Rs 6,497 crore, primarily on account of late payment surcharge. 

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Also read: Adani Power becomes the fourth Adani Group company in GQG's portfolio.