Adani Green Energy shares take winning run to 4th session as stock rallies 61%

Shares of Adani Green Energy Ltd (AGEL) continued their strong upward move for the fourth consecutive session in Monday's trade. The stock surged 9.09 per cent to hit a day high of Rs 1,445. At this price, it has ascended by 60.66 per cent in just four trading days.

Today's fresh interest in the share price came after Adani group's Chief Financial Officer (CFO) Jugeshinder Singh said the Indian conglomerate would consider reviving its scrapped dollar bond between April and June next year. Singh added that other group firms may also explore public bond sales within the year.

This assumes significance as AGEL recently withdrew its $600 million bond offering following bribery allegations by US authorities. However, the Indian company claimed that there were no bribery charges against Gautam Adani and other group executives. It also said that its portfolio companies have sufficient liquidity to cover all debt servicing requirements for at least the next 12 months.

Separately, Crisil maintained its strong credit ratings for Adani Group companies. "Despite recent legal developments, including a US indictment followed by materially false and misleading coverage, the agency has maintained a positive outlook on the group's companies and entities. Adani Group has sufficient liquidity and operational cash flows to meet its debt obligations and committed capex plans over the medium term," the rating agency stated.

On the stock-specific front, bourses BSE and NSE have put the securities of AGEL under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

"ASM framework is in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time and as may be applicable. Further, it may also be noted that the shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company," BSE stated.

Last week, US authorities accused Adani, his nephew and executive director Sagar Adani and managing director of AGEL, Vneet S Jaain, of being part of a scheme to pay bribes to secure Indian power supply contracts and misleading US investors.

The Adani Group has denied the accusations in the US indictment as baseless and said it will seek all legal recourse.

The fresh charges follow much turmoil for the Adani Group in January last year when US-based short seller Hindenburg Research accused it of using offshore tax havens improperly - a charge that the Indian conglomerate has denied.