Adani Group stocks saw a significant rise in early trade on Monday, with 9 out of 10 stocks of the group trading in the green. The strong rally in Sensex and Nifty had a positive impact on Adani Energy Solutions, which registered a rise of about 7 per cent. At the same time, Adani Green Energy shares rose by 6.42 per cent, Adani Total Gas shares increased by 5.33 per cent, Adani Ports shares went up by 4.64 per cent, and Adani Power shares rose by 4.17 per cent.
Adani Enterprises shares rose by 4 per cent, Adani Wilmar shares increased by 3.23 per cent, ACC shares rose by 3 per cent, and Ambuja Cements shares gained 2.71 per cent on the BSE. However, NDTV shares fell by 2 per cent. After the initial rise, profit booking took place, which led to a reduction in the initial gains of many stocks.
Sharp Decline in Adani Shares
Adani Group’s shares fell sharply last week due to lawsuits in the US related to bribery and fraud. The Kenyan government also cancelled a deal worth more than $2.5 billion with Adani Group following the US allegations. On Saturday, Adani Group issued a clarification, stating that it had not entered into any binding agreement to operate Kenya’s main airport.
Adani Group’s Deal with Kenya Cancelled
Last month, Adani Group signed a deal to build and operate power transmission lines in Kenya for 30 years. However, the group stated that this project does not fall under SEBI’s disclosure rules, so its cancellation does not require disclosure.
Clarification of Stock Exchanges
Stock exchanges had sent a notice to Adani Group seeking clarification on news about the cancellation of the purchase process by Kenyan President William Ruto. In its response, Adani Group explained the situation. If the deal had gone through, Adani Group was expected to gain control of Kenya’s main airport.
Following bribery and fraud-related lawsuits in the US, Adani Group paused its plan to raise funds through bonds. Addressing concerns, Adani Group assured investors that its financial position remains strong, with no immediate need for external debt. The group highlighted its robust profits and cash flow, emphasizing that its growth is sustainable without raising additional debt.