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Against the tide

Ahead of its quarter results, Gautam Adani piles up shares of his company through his holding company Adani Agro

Soumik Kar

You have heard cases of insider buying ahead of good results and selling ahead of bad results — right? What happened at the Adani Power counter was exactly the opposite. Ahead of its quarter results on January 28, Gautam Adani was busy piling up shares of his company through his holding company Adani Agro. From January 16, when the company announced that it would declare its quarterly results on January 28, till the day of the results, Adani bought 24.45 lakh shares from the open market at an average price of ₹64.68. If anyone was watching that buying and inferring it was an indication of a good set of numbers in the pipeline, their hopes would have been dashed. The company reported abysmal numbers, nearly doubling its losses from the same quarter previous year. Consolidated total income rose to ₹1,884 crore from ₹ 1,079 crore in the previous year, but consolidated net loss for the quarter stood at ₹619 crore compared with ₹356 crore for the same quarter in the previous year, mainly because of rise in imported coal prices and non-availability of transmission lines. On January 28, the stock closed down 5% to settle at ₹60.90 on the BSE. Now, whether Adani was trying to cushion the share price from an anticipated fall, or buying because it meant good value, only he can answer.