India’s Adani group shares surge again after scandal, stock crash
New Delhi, Mar 3 (EFE).- The shares of Adani Enterprises, the flagship company of the Adani group, on Friday traded at 1,874 rupees or $22.91, their highest value in nearly a month, after a capital injection worth $1.87 billion provided by United States-based asset management firm GQG Partners.
The Adani Enterprise share-price rose 16.6 percent compared to Thursday, when it closed at 1,494 rupees, according to the Bombay Stock Exchange.
This was the highest stock value achieved by the firm, owned by Indian billionaire Gautam Adani, since Feb. 10, when the group descended into a downward spiral and lost nearly 50 percent of its equity value within weeks, following allegation of fraud and stock manipulation. .
Friday’s surge follows Adani’s announcement that GQG Partners had invested in four of the seven major companies of the group.
The US-based investment fund has betted on Adani Ports (APSEZ), Adani Green Energy Limited (AGEL), Adani Transmission Limited (ATL) and Adani Enterprises Limited (AEL).
GQG is investing in a group that owns and operates the largest seaport and airport platforms in India, as well as the main private-sector power transmission and distribution firm, the fund said in a statement Thursday.
Adani group stocks had plummeted in the markets after a report by US-based short-seller Hindenburg Research on Jan. 25, that accused the group of stock manipulation and fraud.
The report, ostensibly based on two years of research including interviews with former executives of the conglomerate and extensive documentation, claims that Adani gained a large part of his fortune by inflating the share prices of his seven key companies, which rose by an average of 819 percent within this period.
Adani’s net worth had witnessed a massive jump between 2019 and 2022, rising from $8.9 billion to over $100 billion at its peak. EFE