Team News Riveting
New Delhi, June 14
Adani Enterprises Limited (AEL) urged all its stakeholders not to be perturbed by market speculations.
“Adani portfolio continues its journey of exponential growth across all verticals thus ensuring immense value to its stakeholders,” the company said in a statement issued in the backdrop of a media report that NSDL has frozen the accounts of 3 foreign funds-Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in Adani Group Companies.
“We regret to mention that these reports are blatantly erroneous and is done to deliberately mislead the investing community. This is causing irreparable loss of economic value to the investors at large and reputation of the group.” AEL said.
Given the seriousness of the article and its consequential adverse impact on minority investors, the company requested Registrar and Transfer Agent, with respect to the status of the Demat Account of the aforesaid funds and have their written confirmation vide its e-mail dated 14th June, 2021, clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen.
“We are issuing this letter in the larger public interest and for the protection of minority investors interest,” AEL said.
The FPIs in question have been investors in Adani Enterprises Ltd for more than a decade. Demergers (discussed below) have resulted in the ownership mirroring in the portfolio companies. All the businesses were incubated by the Adani Enterprises Ltd. the flagship company, established in 1994, and during the last seven years Adani Ports, Adani Transmission, Adani Green Energy and Adani Gas Ltd were demerged and listed on Indian Exchanges.
The Adani Group portfolio continues to attract investors and strategic partners both at primary and secondary level.
1. APSEZ: JV partners namely MSC and CMA-CGM at Mundra port
2. AGEL: French energy giant Total Energies both in operational and equity (over $3Bn)
3. ATL: Qatar Investment Authority Qatar’s sovereign wealth fund, invested close to USD 430 Mn in Adani Electricity Mumbai Ltd, a 100 per cent subsidiary of Adani Transmission Ltd.
4. ATGL: French energy giant, Total Energies taking 37.4 per cent equity
5. AEL: 50 per cent JV with Wilmar Group
Performance of Adani Group portfolio during COVID 19
FY 2020: EBITDA Rs. 26,400 Cr
FY 2021 EBITDA Rs. 32,300 Cr (Growth of 22 per cent)
Based on the current announcements and disclosures, similar growth is expected in March 2022. While Adani Ports has guided for a 11 to 12 per cent cargo volume growth, AGEL operational capacity will increase by over 5 times from under 2 GW in FY20 to nearly 10 GW in FY22. Similarly, Adani Transmission ltd., will add 2500 ckm and cross 20,000 ckm of transmission assets. This will ensure continued outperformance by Adani listed entities in FY22 and beyond.
After the initial set back, the stocks of company bounced back in the later day trade. Adani Enterprises moved higher to Rs 1,530, rebounding 27 per cent from its intra-day low of Rs 1,201 on the BSE in intra-day trade post clarification.
