Adani Ports, Adani Enterprises, Other Group Stocks Rise As Group CFO Unveils $100-Billion Capex Plan
The $100 billion capex will be allocated primarily across three sectors: energy, construction materials, and mining and metals.
Adani Group stocks were trading mixed on Thursday, with Adani Ports and Special Economic Zone Ltd. and Adani Enterprises Ltd. leading the winners. The Gautam Adani-led conglomerate is preparing an ambitious $100 billion capital expenditure plan to be executed over the next six years, marking the largest capex plan by any private group in India, according to Jugshinder (Robbie) Singh, the group chief financial officer of Adani Group.
Singh emphasised that this investment is entirely greenfield, focusing on on-ground capex rather than acquisitions. The group aims to increase its annual investment to Rs 1.5-1.6 lakh crore from Rs 1.1-1.2 lakh crore last year.
The $100 billion capex will be allocated primarily across three sectors: energy, construction materials, and mining and metals. Energy will receive the lion's share, accounting for 83-85% of the planned investments, with about 10% dedicated to construction materials and 6-7% toward mining and metals.
Within the energy sector, the majority of the investment will target renewable energy capacity and storage, aiming to increase the group's renewable capacity and storage sevenfold. Conventional energy capacity is also expected to double.
Singh also indicated that as some promoted companies mature, the Adani Group is likely to reduce its promoter holding over the next five to six years. Despite the reduction, the group will retain majority stakes.
Adani Stocks Share Price Today
Adani Ports shares rose as much as 0.63% intraday to reach Rs 1,465.60, and were trading at a 0.57% high at Rs 1,464.70, as of 09:36 a.m.
Adani Enterprises Ltd. stock was up as much as 0.80% to Rs 2,601.80, paring gains to trade 0.72% higher to Rs 2,599.90 apiece. As the flagship company of the Adani Group, Adani Enterprises operates in various sectors, including mining, integrated resources management, and agro-business.
Adani Energy Solutions Ltd., Sanghi Industries and ACC Ltd. also were trading in the green, in comparison to a 0.11% advance in the benchmark NSE Nifty 50 at 09:40 a.m.
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