While the Indian stock market slid into the red on Monday with other Asian peers, the stocks of the listed Adani companies continued to defy the market and hit new milestones. In a recent surge, the power, and energy arm of the Adani conglomerate, the Adani Power, crossed INR 1 lakh crore ($13.4 billion) in market valuation.
What Happened: The company became the sixth group firm to cross the milestone after its shares rose to an all-time high of INR 272 apiece after hitting a 5% upper circuit. An upper circuit is a maximum level defined by the stock exchange to which a stock can move in a day.
The shares have risen almost 90% in the last month and nearly 172% since the beginning of this year.
Adani Power is the newest addition to the list of Gautam Adani-owned companies, such as Adani Green Energy, Adani Transmission, Adani Total Gas, Adani Enterprises, and Adani Ports & Special Economic Zone, that have previously hit this milestone.
What Moved It Shares: Aside from the recent momentum that has been seen in the Adani Group-owned companies, the rally in its shares was triggered by the company receiving almost Rs 3,000 crore ($391.4 million) in dues with interest from the state-owned power distribution companies of Rajasthan as compensation for higher fuel costs, directed by India’s top court.
Meanwhile, the pilling of wealth in Adani stocks is not only making the shareholders wealthy but has also made its founder Gautam Adani the richest person in India and Asia, according to Bloomberg’s Billionaire Index. The data showed that at the current rate, Adani looks headed to overtake Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B), Warren Buffett, and Microsoft Corporation MSFT Bill Gates.
Adani has added $43 billion to his wealth in 2022, according to the Bloomberg Index, while the world's richest person — Tesla Inc TSLA CEO Elon Musk — has seen his wealth drop by $11.5 billion. The Indian businessman is now worth $119 billion — Gates and Buffett are ahead of him at $122 billio and $127 billion, respectively.
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