The Hindu Business Line : Adani Enterprises jumps

The stock of Adani Enterprises shot up by 12 per cent on Tuesday to Rs 460.15 over Monday’s price. Over a month’s time, the stock has gained 26.17 per cent. Tuesday’s volume also jumped four-fold to 16.46 lakh shares against its two-week average of 4.89 lakh shares on the BSE.

Of the traded volume of 5.5 lakh shares, 1.92 lakh shares or 35 per cent were presented for delivery. According to market players, select investors are accumulating this stock ahead of the forthcoming initial public offering of its group company Mundra Port and Special Economic Zone.

Mundra Port is part of the Ahmedabad-based Adani Group, with businesses in commodities trading, coal mining, power generation, real estate development and agriculture processing. According to reports, the IPO is scheduled to hit the capital market in October to raise about Rs 1,500 crore.

It has been observed that promoters’ company shares rise in the run up to the IPO of group companies. However, in this case, Adani Enterpries has no equity stake in Mundra Port.

IPO plan hits snag

Earlier, the IPO plans of the company hit a roadblock, when SEBI in its May order had barred Adani Group promoters from entering the market for two years. However, the company later got a reprieve from the Securities Appellate Tribunal allowing it to raise funds through capital markets.

The IPO was originally slated to open in July.

K.S. Badri Narayanan

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