Adani News

Tag: Adani

  • Adani shares need big rally to reach pre-Hindenburg levels

    Adani shares need big rally to reach pre-Hindenburg levels

    The Adani Group, one of India’s leading conglomerates, has been in the news for a while now, thanks to the Hindenburg Research report that was released on January 24, 2023. The report levels allegations against the group causing a massive dip in the stock prices of the Adani Group companies.

    However, the shares recovered significantly after the initial dip, but they still require a huge rally to revisit their pre-Hindenburg levels.

    Nifty 50 index recovered
    The recovery in the broader market was much quicker, with the Nifty 50 index crossing the January 24 level of Rs. 18118.30. However, two of its constituents from the Adani Group, namely Adani Enterprises Limited and Adani Ports & Special Economic Zone Ltd, are yet to recover fully. The shares of these companies are still trading below their pre-Hindenburg levels.

    As of May 4, 2023, the share prices of Adani Enterprises Limited and Adani Ports & Special Economic Zone Ltd were Rs. 1911.25 and Rs. 679.75, respectively. While this is a significant recovery, the shares still fall short of their pre-Hindenburg levels of Rs. 3442 and Rs. 761.20, respectively.

    List of Adani shares, their pre-Hindenburg and current levels
    The recovery of Adani shares has been fast as the group has taken several steps to address the concerns raised in the Hindenburg Research report.

  • Surat: Adani Power begins supply of competitive thermal power to friendly neighboring country

    Surat: Adani Power begins supply of competitive thermal power to friendly neighboring country

    It will replace expensive electricity generated from liquid fuels and reduce the average cost of electricity purchased.
    Godda Power will play an important role in making Bangladesh’s industries more competitive.

    Adani Power Limited (APL), a part of the diversified Adani Group, has announced the commissioning of its first 800 MW ultra-super-critical thermal power generation unit at Godda in Jharkhand district of India and Bangladesh with 748 MW of electricity. supply has started. The power supplied from Godda will significantly improve the situation in the neighboring country as it will replace expensive power generated from liquid fuels, thereby reducing the average cost of power purchased.

    Adani Power Limited CEO S.B. Khaylia said, “The Godda power plant is a strategic asset in the long-standing India-Bangladesh relationship. It will ease the supply of electricity in Bangladesh, making its industry and eco-system more competitive.

    It is going to be the most efficient and eco-friendly thermal power plant set up in India and the entire South-East region and one of the best-in-class in the world. It is the first power plant in the country with 100% Flue Gas Desulphurization (FGD), SCR and zero water discharge from day one of its operation.”

    In November 2017, the Bangladesh Power Development Board (BPDB) entered into an agreement with Adani Power Jharkhand Limited (APJL), a wholly owned subsidiary of APL, to purchase power from the 2X800 MW ultra-super critical power project at Godda with a net capacity of 1,496 MW. Long Term Power Purchase Agreement (PPA) has been completed. India’s largest power producer in the private sector is expected to commission its second 800 MW unit soon.

    It needs to be noted here that Bangladesh has the largest liquid fuel based power generation plant in the Indian subcontinent region. The installed capacity of Heavy Fuel Oil (HFO) based plants is about 6,329 MW and that of High-Speed Diesel (HSD) based plants is about 1,290 MW, taking the total to over 7,600 MW.

    As per the annual report of BPDB for the financial year 2021-22, the total tariff for HFO based plants is approximately BDT 22.10/kWh (USC 21/kWh) and the total tariff for HSD based power plants is approximately BDT 154.11/kWh (USC 149/kWh). kWh), which is much higher than the tariff of the Godda power plant (energy cost estimated to be around 9 cents/kWh). Although currently, Bangladesh has long term PPA ties with three other imported coal based generators, Godda TPP’s net tariff is competitive as compared to other counterparts.