Adani Group Stocks Make Investors Richer By Rs 73,305 Crore

Shares of Adani Group companies closed higher on Monday, making investors richer by Rs 73,305 crore, as the market surge after the BJP's astounding victory in state elections and the conglomerate's plan to bolster capex supported the ongoing rally.

Adani Group stocks added as much as Rs 1.20 lakh crore to investor wealth, taking their total market capitalisation to Rs 12 lakh crore on Monday. The shares gave up some of the gains, adding Rs 73,305 crore in market value at a market capitalisation of Rs 11.93 lakh crore by close.

Adani Green Energy Ltd. led the gains with a jump of 9%. Adani Power Ltd. was up 5.5%, Adani Enterprises closed 7% higher, while Adani Energy Solutions Ltd. and Adani Total Gas jumped over 4.5%.

The group stocks jumped amid market euphoria after the BJP swept three Hindi heartland states. Along with its plan to ramp up capex, that acted as a fresh trigger. Investors have turned bullish after the Supreme Court upheld its confidence in SEBI's probe into the Adani-Hindenburg matter. Chief Justice of India DY Chandrachud himself said during the hearing that media reports against the Gautam Adani-led conglomerate can't be taken as "gospel truth".

The conglomerate is also looking to boost growth spending as well. It plans to spend Rs 7 lakh crore capital expenditure over the next 10 years to further consolidate its lead as a major infrastructure player in India, according to Chief Financial Officer Jugeshinder Singh.

The group has the capacity to invest Rs 20 lakh crore but a lack of high-quality vendors was an impediment, Singh said at an industry event on Friday. "As we develop the vendor pool, our capex will go up. If we manage our core strengths of execution and operations to develop and run infrastructure properly, in a 25-year period we will invest up to Rs 80 lakh crore."

The Adani Group will continue to focus on infra businesses as the margins in FMCG businesses are much lower, he said.

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