Adani Enterprises shares drop 3% today, down 7% from record high level

Shares of Adani Enterprises fell 3 per cent in Monday's trade amid a media report suggesting Adani Airport Holdings increased borrowing limit by Rs 2,500 crore. As per a Business Standard report, the Adani group increased the borrowing limit of its airport arm to Rs 16,500 crore from from Rs 14,000 crore fund the expansion of its eight airports across the country. Adani Airport Holdings is a subsidiary of Adani Enterprises.

Also, the open offer by Vishvapradhan Commercial Private, AMG Media Networks and Adani Enterprises for an additional 26 per cent stake in NDTV would conclude today.

Adani Enterprises fell 2.83 per cent to hit a low of Rs 3810.25 on BSE. With this, the scrip has fallen 7 per cent from its record high of Rs 4,098.10 on BSE, hit on November 16.

Recently, the board of Adani Enterprises approved raising funds aggregating up to Rs 20,000 crore through a further public offering (FPO).

In the recent investor presentation, Adani Group said the passenger movement in Adani Airport Holdings was at approximately 90 per cent pre-Covid level, with a total of 16.3 million passengers. Construction in Navi Mumbai was continuing at pace and was on schedule for completion in 2024, it said.

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In a recent earnings call, the company said the group's core value proposition is that it looks at airport as a regional or community economics business that means that airport must serve the community it fits in.

"So, we are very confident on our what we call the city side or community side development and which should start dwelling fruits from 2025-2026 and then should become the major part of airport business by 2030-2031. Our community-based airport businesses will be about 55 to 60 per cent of our airport Ebitda and non-aero businesses would be another 20-25 per cent and aero business will only be 10 to 15 per cent of airport business,” said CFO Jugeshinder Singh.

He said his company was on track to have just over Rs.2000 Crores of Ebitda in the business and was likely to continue to see improvements.

"We are very confident we are on track and investors will start seeing the results somewhere between 2025 and 2026 as the business starts coming on line. The rate of return of this business will comfortably exceed our cost of capital. When I say comfortably, the rate of returns is likely to be double of our businesses and we are very, very pleased with the work for the field has engaged and we are confident to deliver one of the best airport investment opportunity that aggressively work and that largely is driven by our own execution capability and operational capability," he said.