A rise of over 3% was observed in shares of Adani Power Ltd during early trading today, attributed to an 8.1% stake being sold by promoters to GQG Partners, led by Rajiv Jain, on Wednesday. The losing streak experienced by Adani Power stock over the past two days came to a halt today. A surge of 3.23% was seen in Adani Power shares, reaching Rs 288.45 during early trading. This surge in stock value led to an increase in the firm’s market capitalization to Rs 1.09 lakh crore. Notably, the firm saw a turnover of Rs 31.92 crore on BSE with 11.17 lakh shares being exchanged.
On August 22, 2022, the share achieved a 52-week high of Rs 432.80. Analysing technical indicators, the relative strength index (RSI) of Adani Power stands at 60.1, indicating that the stock is trading within neither the overbought nor the oversold zone. Displaying high volatility over a year, the stock holds a beta of 1.1. Adani Power shares remain above various moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Adani Power shares have experienced a decrease of 25.58% within a year and a 5% fall in 2023. However, over a span of three years, the stock has remarkably surged by 664%. Bulk deal data reveals that the US-based boutique investment firm acquired a substantial 31.2 crore equity shares of Adani Power, amounting to more than Rs 9,000 crore ($1.1 billion).
Prior to this, the promoter Adani family possessed 74.97% or 289.16 crore equity shares of the utility company. They successfully sold an 8.1% stake, corresponding to 31.2 crore equity shares, at an average price of Rs 279.17 per share.
GQG Partners, the investment firm led by Jain, has demonstrated a growing interest in Adani Group company shares. Despite negative reports from US short seller Hindenburg, Jain’s investment firm has chosen to invest in various companies within Gautam Adani’s conglomerate. Adani Power is now the fourth entity from Gautam Adani’s diversified portfolio where GQG has invested since May.
For the quarter ending June 2023, Adani Power reported an impressive 83.25% rise in consolidated net profit, totalling Rs 8,759.42 crore compared to Rs 4,779.86 crore reported during the same quarter of the previous fiscal year. This increase in net profit was largely influenced by significant other income.
However, the company’s revenue from operations witnessed a decline of 19.80% from Rs 13,723.06 crore in the corresponding quarter of the previous fiscal year to Rs 11,005.54 crore. Notably, the significant increase in other income to Rs 7,103.47 crore was primarily due to the recognition of prior period regulatory revenue amounting to Rs 6,497 crore, mainly attributed to late payment surcharge.