Two prominent promoter group entities have recently made substantial acquisitions in Adani Ports and Special Economic Zone, further solidifying their presence in the company. Resurgent Trade and Investment secured 1.51% stake by acquiring 3,26,18,000 shares between June 2 and August 11. Simultaneously, Emerging Market Investment DDC obtained a 0.52% stake with the purchase of 1,11,89,500 shares during June 22-28. This combined acquisition of 2.03% has elevated the cumulative holding of promoter and promoter group entities to 63.06%.
Prominent Moves in the Open Market
The strategic acquisitions by Resurgent Trade and Investment and Emerging Market Investment DDC were made through the open market, reflecting a strong show of confidence in Adani Ports and its growth prospects. However, during the period when these acquisitions took place, the company’s stock experienced a 9.4% appreciation.
Challenges and Resilience
Despite its recent share price gains, Adani Ports faced a setback in the stock market due to news of Deloitte‘s resignation as the company’s auditor. This development triggered a 1.4% decline in shares on the NSE, highlighting the impact of auditor changes on investor sentiment. Deloitte had previously been appointed as the statutory auditor for a 5-year period, but differences with the management regarding certain transactions led to its resignation.
In response to the vacancy, Adani Ports swiftly appointed MSKA & Associates as its new auditor, ensuring continued financial oversight for the company. The episode underscored the challenges and intricacies of maintaining robust corporate governance and investor confidence.
Positive Financial Indicators
Amidst these developments, Adani Ports reported robust financial performance for the June quarter, resulting in a stock surge to a 3-month high. The company witnessed an impressive 83% year-on-year rise in consolidated net profit, reaching Rs 2,115 crore. This growth was driven by a 24% increase in revenue, amounting to Rs 6,248 crore.
Regulatory Focus and Future Prospects
The market’s attention is now directed towards the forthcoming report from the Securities and Exchange Board of India (SEBI), which is the result of an investigation into the Adani Group prompted by allegations raised by Hindenburg Research. The regulator’s request for an additional 15 days from the Supreme Court to delve into the Adani-Hindenburg matter signifies the heightened scrutiny surrounding the group.
While facing challenges, Adani Ports remains a key player in India’s economic landscape, with its growth trajectory being closely monitored by investors, regulatory bodies, and market analysts.
Disclaimer: The information provided here is based on available public information and should not be construed as official statements or financial advice. Always refer to authoritative sources for the latest updates on business transactions and investments.