Adani's Valuation Binge
Business Today|July 11, 2021
Stocks of Adani group companies have skyrocketed in the last one year, making Chairman Gautam Adani the second-richest Asian. However, the group’s finances are still to catch up, questioning the rationale behind the meteoric rise
- Nevin John
Adani's Valuation Binge

In June 2020, the board of Adani Power decided to delist the company whose share price was languishing at ₹38 against its August 2009 listing price of ₹100. The low price was affecting fundraising and growth plans. The board set the floor price for delisting at ₹33.82 and has been waiting for approval from stock exchanges. However, over the last seven months — December 2020 to June 2021 — the company’s share price surged around 300 per cent, pushing the scrip to ₹166.

Shares of five other Adani group companies grew three to 10 times in the last one year until June 11, 2021. Market value of Adani Green Energy (AGEL) increased to ₹1.9 lakh crore (as on May 31, 2021). Barring Adani Power (₹57,000 crore), each of the other group firms’ market cap crossed ₹1.7 lakh crore by June 11. Aggregate market capitalisation of the six entities stood at ₹9.5 lakh crore. The rise in market value propelled group Chairman Gautam Adani (the family owns 56-75 per cent in listed entities) to being Asia’s second-richest man, after Reliance Industries’ Mukesh Ambani. Adani’s wealth shot up to $77 billion.

The spike in Adani group stock prices was, however, highly unusual. They grew 122-819 per cent during January 2020-June 11, 2021, while the Sensex and the Nifty rose 27 per cent and 30 per cent, respectively.

この蚘事は Business Today の July 11, 2021 版に掲茉されおいたす。

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この蚘事は Business Today の July 11, 2021 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

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