Qatar Investment Authority invested in India’s billionaire Gautam Adani group-owned renewable power producer firm, Adani Green Energy Ltd.’s shares worth $500 million.
The proposed investment by Qatar Investment Authority in the company owned by billionaire Gautam Adani is done as the company is recovering from the fallout it suffered at Hindenburg Research’s January disclosure that it has been left with short holdings in the conglomerate.
Qatar Investment Authority is reported to have chosen a stake in Adani Green Energy Ltd shares in a $500 million block deal on today itself.
The earlier loss of Adani Energy
The news reported that the company’s shares were sold in a block deal on the open market on Monday. Prior to the purchase made by the authority, the stock of Adani Energy Ltd dropped up to 12.4% to its day’s low of Rs 886.2 on the BSE. However, not unexceptionally, it eventually recovered the majority of those losses.
According to data, almost 1.1 million shares of the Adani Group-owned renewable energy generator company changed partnerships in fourteen block deals at a price range of Rs 882 to 954 rupees per share.
The Block transaction of Adani Energy
According to sources, 2.7% of the company’s equity was transferred in a block transaction. According to shareholding information accessible with the markets, the promoter and promoter group held approximately 56.27% stake in the company, with the public owning the remaining shares. The deal’s buyers and sellers are unknown
Today’s Trading of the Adani Company
During the Intra-day, the stock was trading 3% lower on the BSE at Rs 982.9 than it did at Rs 1,012.5 per share when it closed on the previous Intra-day. The company’s stock’s year-to-date performance has seen a 48% fall.
Nevertheless, it is down 62% from the Rs 2,574.05, 52-week high.
According to a report, the government is most likely to have chosen a stake in the company’s shares in a $500 million block transaction today. Prior to the purchase, the stock dropped up to 12.4% to its day’s low of Rs 886.2 on the BSE, however it eventually recovered the majority of those losses.
Effect on the Market Share of the Adani company
Technically, the day Relative Strength Index for the stock is at 48.7. According to statistics of the stock market today, an RSI below 30 is oversold, and an RSI above 70 is overbought, that is both the cases are unwanted. The Moving Average Convergence/Divergence (MACD), is above its centre line but below the signal line at 27, which is 27.6.
Investor trust was severely damaged by the short seller’s research, which also reduced the market value of Adani companies by close to $147 billion.
Although the value of its group firms’ shares has recovered due to the investment, it’s still down by over $100 billion. Questions asked by the investors and the reporters for the future concerns of the company were not immediately answered by QIA or Adani Green.
Financial Reports declared by Adani Energy Ltd
For the quarter that ended in June 2023, the company’s consolidated net profit increased 51% year over year to Rs 323 crore. It Was Rs 214 crore in the recent quarter. When compared to the same period last year, its operating revenue increased 33% to Rs 2,176 crore.
In the first quarter, electricity supply income increased by 55% YoY to Rs 2,059 crore. EBITDA for this market was Rs 1,938 crore, up 53% year over year.
With the addition of 1,750 MW solar wind hybrid, 212 MW solar, and 554 MW wind power plants over the previous year, the operating capacity during the quarter climbed by 43% YoY to 8,316 MW. The stock’s average target price is Rs 402, which represents a 59% decline from the stock’s current market price. Analysts have given the stock a sell recommendation as a whole.