Adani Enterprises’ Nifty inclusion to attract $285 million inflows

Market


The inclusion of Adani Enterprises, flagship of the diversified Adani Group, into the Nifty 50 index by this month-end, is set to attract inflows of about $285 million, as per domestic brokerage and research firm Edelweiss.

Adani Enterprises is replacing Shree Cement from the index and the changes will be effective from September 30, 2022 while the adjustment will take place on September 29, 2022 (Thursday). 

For inclusion in the index, the security should have traded at an average impact cost of 0.50% or less during the last six months for 90% of the observations for a portfolio of 10 crore. 

Headquartered in Ahmedabad, Adani Enterprises is the flagship firm of Indian conglomerate Adani Group. The stock has given multibagger return of more than 102% in 2022 (YTD) so far as compared to 0.7% rise in Nifty 50.

The company’s attributable profit after tax (PAT) increased by 73% to 469 crore in the first quarter ended June of the current financial year whereas its consolidated revenue surged by 223% year-on-year (YoY) to 41,066 crore for the quarter ended June 30, 2022, on the back of strong performance by integrated resources management (IRM) and airport business.

The company’s EBIDTA jumped by 107% to 1,965 crore due to full consolidation of airports business and improved realisations in IRM business.

During the first quarter of the current financial year, the company completed 7,700 crore primary equity transaction with Abu Dhabi-based International Holding Company (IHC) for 3.5% stake.

Apart from Nifty 50, changes have been announced in several indices, including Nifty Next 50, Nifty 500, Nifty 200 and Nifty 100. Adani Total Gas Ltd, Bharat Electronics Ltd, Hindustan Aeronautics Ltd, Indian Railway Catering and Tourism Corporation Ltd, MphasiS Ltd, Samvardhana Motherson International and Shree Cement Ltd will find a place in the Nifty Next 50.

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