Adani Enterprises shares in focus as Israel's Elbit Systems to pick 44% stake in Adani Defence unit

Shares of Adani Enterprises Ltd will be in focus on Wednesday morning  after the Adani group flagship firm informed stock exchanges that a wholly-owned subsidiary of the company Adani Defence Systems and Technologies has signed shareholders agreement and share subscription agreement with Israel's Elbit Systems Limited.

"Pursuant to the above, ESL will be subscribing 44 per cent stake in Atharva Advanced Systems and Technologies Limited, which is a wholly owned subsidiary of ADSTL," Adani Enterprises told stock exchanges on Tuesday.          

Adani Enterprises said the agreements are entered with the object of developing and manufacturing of various autonomous technology and systems for defence applications. Post issuance of shares by AASTL to ESL, ADSTL and ESL would own 56 per cent and 44 per cent shares, respectively, in AASTL. AATSL would thus cease to be a wholly-owned subsidiary of ADSTL.

"The board of directors of AASTL will comprise of nominees from ADSTL and ESL, with majority represented by ADST," Adani Enterprises said.

Shares of Adani Enterprises are down 5 per cent in the last one month and 42.85 per cent year-to-date, thanks to Hindenburg Research's scathing report  alleging stock manipulation and accounting fraud at the group firms.

Earlier on Monday, the Adani group flagship said it was looking to bid for duty-free shops at Macau International airport. The company informed stock exchanges this week that Mumbai Travel Retail, a step-down subsidiary of Adani Enterprises  completed the incorporation process of its wholly owned subsidiary namely “MTRPL Macau Limited” in Macau.

It had suggested that the company was incorporated for the purpose of bidding of the tender of duty-free liquor & tobacco shops at the airport.