Day: November 29, 2024

The financial landscape is set to experience a significant shift as Adani Energy Solutions, Adani Total Gas, and Adani Green Energy prepare to enter the futures and options market. This development marks an important milestone for investors and traders looking to expand their strategic investment opportunities.

The newly inducted Adani Group companies have already demonstrated remarkable market performance, with impressive gains that have caught the attention of financial analysts and market participants. Their inclusion in the derivatives segment signals growing confidence and potential for these energy sector companies.

December F&O Series Kicks Off

As the December futures and options series begins, market watchers are keenly observing these new Adani Group entrants. The addition of these stocks promises to bring increased liquidity, trading volume, and potentially new investment strategies to the dynamic Indian financial market.

The three are among the 45 stocks that will now have futures and options contracts from Friday, which will also mark the start of the December F&O series.

Share Price Movement 

The share price of Adani Green Energy Limited went up by 14.7 percent to Rs. 1,247.3 per share on Friday, an increase from its previous close of Rs. 1,087.2 per share. The market capitalisation now stands at approximately Rs. 1,92,697.5 crore as of November 29, 2024.

What Happened 

Adani Green Energy experienced a significant market recovery, surging up to 15% and trailing near the upper circuit. The stock’s positive momentum came after the inclusion of Adani Group stocks in the newly expanded futures and options contracts. Adani Green, along with 2 Adani Group stocks, are now set to open a gateway for F&O in the future.

Q2 Financial Highlights

According to its recent filing, in the quarter ending September 2024, Adani Green Energy’s consolidated revenue from operations has increased by 37.6 percent YOY from Rs. 2,220 crore in Q2 FY24 to Rs. 3,055 crore in Q2 FY25 and increased by 7.76 percent QoQ from Rs. 2,835 crore in Q4 FY24. 

The company’s consolidated net profit has increased by 38.8 percent, from Rs. 371 crore in Q2 FY24 to Rs. 515 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has decreased by 18.12 percent QoQ from Rs. 629 crore.

Market Outlook 

The industry outlook for the Indian renewable energy sector appears robust. The government is targeting 500 GW of non-fossil-based electricity generation by 2030, with a focus on solar power. India’s installed renewable energy capacity is expected to increase to 170 GW by March 2025, driven by strong policy support and significant investments.

The government is also supporting farmers through schemes like the PM-KUSUM program, which enables them to set up solar power plants and solarise grid-connected agriculture pumps. Overall, the industry shows signs of increasing investments and a growing focus on renewable energy to meet India’s rising electricity demand.

Shareholding Pattern

As of the November 2024 shareholding pattern, Adani Green Energy Limited is primarily held by the promoters at 60.93 percent, foreign institutional investors hold 15.16 percent, and the public with 22.45 percent.

About Company

Adani Green Energy Limited (AGEL) is a leading force in India’s renewable energy sector. Founded in 2015 as part of the Adani Group, the company specialises in solar and wind energy generation. Headquartered in Ahmedabad, AGEL is committed to driving India’s transition to sustainable energy. With a robust portfolio of over 20,434 MW in renewable projects, AGEL plays a critical role in advancing clean energy initiatives.

The company operates across solar, wind, and hybrid energy segments. Its notable projects include the Kamuthi Solar Power Plant, one of the largest photovoltaic plants globally. AGEL boasts an operational capacity of 7,393 MW, with plans to achieve 25 GW by 2025 and an ambitious 50 GW by 2030. Strategically located in 12 Indian states and expanding globally, the company’s long-term agreements ensure consistent revenue and growth.

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Shares of specialised water and wastewater management company Enviro Infra Engineers made a stellar debut on the stock exchanges on Friday, November 29, 2024. On the BSE, the stock was listed at Rs 218, reflecting a premium of Rs 70 or 47.30 per cent over its issue price of Rs 148. 

On the National Stock Exchange (NSE), Enviro Infra shares had an even stronger debut, opening at Rs 220 apiece. This provided IPO investors with a return of Rs 72 per share, translating to a gain of 48.65 per cent on the allotment price.

The listing performance was consistent with grey market predictions. Ahead of its debut, the company’s unlisted shares were trading at a premium of Rs 57 over the IPO price, indicating positive sentiment and a strong debut on the bourses, according to sources tracking grey market activity. 

Enviro Infra’s listing was above our expectations,” said Prashanth Tapse, senior VP (Research), Mehta Equities. “This shows the demand for theme-based sectors, and water and wastewater management companies have a bright future.” 

According to Tapse, the healthy listing gain is justified due to reasonable IPO valuation, sector-wise focus, and the increasing relevance of water and wastewater infrastructure treatment by the government and industries, along with 2.5x order book visibility.

“Considering all the parameters and improving market sentiments, conservative investors who were allotted shares can think of booking profits due to the ongoing market volatility scenario,” Tapse continued. “While risk-takers should consider holding the company for the long-term, despite knowing the short-term volatility.” 

For non-allotted investors, he advised accumulating shares if there are dips post-listing. 

This outstanding performance was driven by the company’s strong fundamentals, strong investor interest, and the positive sentiment surrounding the water and wastewater treatment sector, said Shivani Nyati, Head of Wealth at Swastika Investmart.

According to her, the company’s focus on sustainable infrastructure and its strong track record in executing projects have contributed to this impressive listing. However, investors should remain cautious and monitor the company’s performance closely, considering factors such as project execution risks, regulatory changes, and competition in the sector, she added.

“While the initial listing is promising, long-term success will depend on Enviro Infra’s ability to capitalise on its growth opportunities and deliver strong financial performance,” Nyati said. As of now, she advised investors to hold their position by keeping a stop-loss at around Rs 200. 

The Rs 650.43 crore offering of Enviro Infra, which comprised a fresh issue of 38,680,000 shares and an offer for sale of 5,268,000 shares with a face value of Rs 10, ended for subscription on Tuesday, November 26, 2024, receiving an overwhelming response from investors as it was oversubscribed by 89.90 times, as per BSE data. The Enviro Infra IPO was available at a price band of Rs 140-148 per share, with a lot size of 101 shares.

Enviro Infra intends to utilise the proceeds from the Fresh Issue towards funding working capital requirements, infusing funds into its subsidiary, EIEL Mathura Infra Engineers, to build a 60 MLD STP under the project titled ‘Mathura Sewerage Scheme’ at Mathura in Uttar Pradesh through Hybrid Annuity-Based PPP Mode, repayment/prepayment, in full or in part, of certain outstanding borrowings, funding inorganic growth through unidentified acquisitions, and for general corporate purposes. 

Established in 2009 and headquartered in Delhi, Enviro Infra Engineers (EIEL) designs, constructs, operates, and maintains Water and Wastewater Treatment Plants (WWTPs) and Water Supply Scheme Projects (WSSPs) for government bodies in India.

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Indian food delivery app Zomato has raised $1 billion from institutional investors, completing its first major fundraise since its 2021 IPO.

The food delivery and quick-commerce giant issued approximately 336.5 million shares priced at ₹252.62 each ($3) in a qualified institutional placement, according to a stock exchange filing on Friday.

The fundraise saw strong participation from leading Indian mutual funds. Motilal Oswal emerged as the largest investor, with its family of funds picking up 20.81% of the shares issued. ICICI Prudential’s funds secured 12.78%, while HDFC and Kotak funds acquired 8.68% and 5.95%, respectively.

The $1 billion fundraise strategically shifts Zomato’s status to a “domestic” company by pushing its foreign ownership below 50%. This would allow its quick-commerce unit, Blinkit, to adopt an inventory-led model (currently restricted to domestic firms), enabling direct control over products and warehousing.

The timing of the capital raise is also strategic, coming just weeks after rival Swiggy’s $1.35 billion IPO earlier this month. Zepto, another leading quick-commerce startup, secured $350 million this month in a deal brokered by Motilal Oswal.

Shares of Swiggy were down 4.1% on Friday, capping this week’s overall rally to 12.8%. Shares of Zomato, offered to investors participating in the share placement at a 5% discount, were down roughly 1% on Friday, but remain up 127.7% year-to-date. Zomato has a market cap of about $30 billion.

Zomato’s co-founder and CEO Deepinder Goyal last month said the firm, which already had $1.3 billion in cash reserves, was raising the additional funds to maintain competitive parity.

The company, which recently reported its second consecutive quarterly profit, leads India’s quick-commerce market with Blinkit, competing against well-funded rivals like Swiggy, Zepto, and BigBasket in a sector projected to generate over $6.5 billion in annual run-rate revenues.

“We see the quick-commerce industry going through a phase of increased competition in the next 6-12 months. Incumbents in quick-commerce are looking to or have already raised capital. Four new names including Flipkart, Reliance, BigBasket & Amazon are looking to enter the quick-commerce space,” Bank of America analysts wrote in a note to clients.

“In this space, first mover advantage matters, and given the TAM is c. 30 mn households (330 mn households in India), we believe it is logical for the market leader Zomato to want to maintain its leading c. 40% share.”

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