Adani Enterprises rises for 3rd day as defence arm acquires Air Works for Rs 400 crore

Adani Enterprises stock rose nearly 1 per cent in Wednesday's trade, taking its winning run to the third straight session.

In an exchange filing post market hours of Tuesday, Adani Enterprises said its arm Adani Defence Systems & Technologies (ADSTL) has signed definitive agreements to acquire Air Works for an enterprise value of Rs 400 crore. 

Following the development, the stock rose 0.88 per cent to hit a high of Rs 3,313.95 on BSE. The scrip had risen 2 per cent on Tuesday after the Supreme Court has dismissed Kerala government's plea against a decision to lease Thiruvananthapuram airport to Adani Enterprises.

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With Wednesday’s gains, the scrip has rallied 92.31 per cent year-to-date.

“Given India's growth trajectory and the government's focus to network the nation through a massive mesh of air connectivity, it is inevitable that the primary growth of India's airline and airport sector lies ahead of it. Therefore, the maintenance, repair, and overhaul sector has a crucial role to play in both, the defence and civilian aerospace sector," said Ashish Rajvanshi, CEO of Adani Defence & Aerospace.

"Add to this the ongoing modernisation program to make India a large market for defence aircrafts, and what emerges is one of the most exciting, comprehensive, at scale and digital MRO services within the boundaries," Rajvanshi added.