Adani Group stocks extend rally on $2 billion investment by UAE's IHC

International Holding Company (IHC) has agreed to invest $2 billion in Adani Enterprises, Adani Transmission, and Adani Green Energy through preferential issue

Shares of Adani Group companies traded higher by up to 8 per cent on the BSE in Monday's intra-day trade, extending their previous week's rally, after UAE's International Holding Company (IHC) agreed to invest 7.3 billion dirhams ($2 billion) in three group companies through preferential issue. In comparison, the S&P BSE Sensex was down 0.60 per cent at 59,092 points at 09:37 AM.

IHC will invest Rs 3,850 crore in Adani Green Energy (AGEL), Rs 3,850 crore in Adani Transmission (ATL), and Rs 7,700 crore in Adani Enterprises (AEL), in compliance with SEBI regulations.

"The transaction is expected to be completed in a month, after all necessary approvals are obtained. The capital will be utilized for pursuing the growth of the respective businesses, further strengthening of the balance sheet and for general corporate purposes," the companies said in a separate regulatory filing.

Among individual stocks, AGEL hit a new high of Rs 2,520, up 8 per cent today, and 16 per cent in the past two trading days. The company's board approved allotment up to 20.02 million equity shares at a price of Rs 1,923.25 per share, aggregating up to Rs 3,850 crore, to IHC Capital Holding LLC incorporated under the Laws of Abu Dhabi, UAE or a subsidiary or an affiliated special purpose vehicle of IHC Capital Holding LLC for cash consideration by way of a preferential issue on a private placement basis.

Adani Transmission, meanwhile, surged 6 per cent to Rs 2,696, and gaining 10 per cent in the past two trading days. The company said it will allot 15.68 million equity shares at a price of Rs 2,454.95 per share aggregating to Rs 3,850 crore.

Adani Enterprises will allot 4.02 million equity shares at price of Rs 1,915.85 per share aggregating to Rs 7,700 crore. The stock hit a new high of Rs 2,294, ralling 6 per cent in early deals. It has gained 9 per cent in the past two trading days.

Other group stocks, such as Adani Power advanced 5 per cent at Rs 231.70, Adani Wilmar was up 5 per cent at Rs 577.30, Adani Total Gas added 7 per cent at Rs 2,599, and Adani Ports and Special Economic Zone edged 1 per cent higher at Rs 845.75) in an otherwise weak market.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
Adani Green	2509.00	2323.95	8.0
Adani Total Gas	2564.10	2424.25	5.8
Adani Transmissi	2676.85	2542.00	5.3
Adani Wilmar	577.30	549.85	5.0
Adani Power	226.25	220.70	2.5
Adani Enterp.	2184.00	2170.70	0.6
Adani Ports	844.05	839.30	0.6