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The Adani Enterprises stock jumped around 3% in the morning on 21st November 2023 after its step-down subsidiary, Mumbai Travel Retail Pvt. (M.T.R.P.), incorporated its wholly-owned subsidiary, Mumbai Travel Retail Pvt. Ltd.(M.T.R.P.L.) Macau. Mumbai Travel Retail holds 100% of the share capital of M.T.R.P.L. Macau and has an authorised share capital of Market Operating Price (M.O.P.) of $25,000 (about Rs. 2.5 lakh).
The registration process for M.T.R.P.L. Macau Limited (M.M.L.) was completed on 20th November 2023, even with the Adani case dispute, said Adani Enterprises in the filing. The new business broadens the Adani Group’s array of offerings. Adani Enterprises was 2.9% higher at Rs. 2,213 at 10.19 am on the National Stock Exchange than it was at the previous closing. The stock has plunged 42% in the year 2023, underperforming the benchmark Nifty, which gained more than 8% during the period.
Adani’s expansion into Aviation sector despite the Adani case controversies
The Adani Group’s decision to open a store at Macau’s airport is more of an extensive strategy to increase its involvement in the aviation sector. Several Indian airports, including those in Mumbai, Ahmedabad, Lucknow, Jaipur, Guwahati, Thiruvananthapuram, and Mangalore, are already managed by the conglomerate. Additionally, the firm is leading the construction of the upcoming airport in Navi Mumbai. Notably, in spite of the controversy surrounding the Adani case, the Group has expanded into the aircraft leasing industry.
It founded a subsidiary in Ahmedabad’s Gujarat International Finance Tec-City (Gift City). In addition, it just acquired Air Works, a maintenance, repair, and overhaul (M.R.O.) business, which is a noteworthy acquisition. According to reports, the Adani Group is considering purchasing A.I. Engineering Services (A.I.E.S.L.), Air India’s M.R.O. division. This possible acquisition further solidifies the Group’s standing in the market by indicating a significant consolidation of its aviation-related services.
Adani Enterprises shares increased on the Bombay Stock Exchange (B.S.E.)
Adani Enterprises shares rose by as much as 3.86% to reach an intraday high of ₹2,232 on the Bombay Stock Exchange (B.S.E.), albeit the controversy surrounding the Adani case. Additionally, the market capitalization of the company rose to ₹2.52 lakh crore. The stock opened at ₹2,158 on 21st November 2023, which was higher than the closing price of 2148.95 on the preceding B.S.E. On 21st November 2023, the share price of Adani Enterprises reached its peak of ₹4,189.55.
According to the exchange filing, M.T.R.P.L. Macau Limited (M.M.L.) was founded with an authorised share capital of M.O.P. $25,000, or approximately ₹2.5 lakh. Despite the fact that the company’s registration was completed on November 20, 2023, it has not yet begun operations. Adani Enterprises filed a B.S.E. stating that M.M.L. was formed with the goal of placing a bid for the duty-free spirits and tobacco stores at Macau International Airport.
Mumbai Travel Retail Private Limited, the company’s sole shareholder, was required to obtain the necessary R.B.I. authorization subsequent to MML’s founding. In early September 2023, Ambuja Cements, the cement division of the Adani Group, created three new wholly-owned subsidiary companies to produce cement, R.M.X., and associated items, as well as to simplify aircraft leasing. Lotis I.F.S.C. Private Limited, Ambuja Concrete North Private Limited, and Ambuja Concrete West Private Limited are the names of the companies.
The Adani Group to bid for Macau airport duty-free shops
The Adani Group plans to submit a bid to develop duty-free shops at the international airport in Macau. The largest airport operator in India is growing worldwide. Despite the controversy surrounding the Adani case, Adani Enterprises, the conglomerate led by billionaire Gautam Adani, said in a stock exchange statement that it had successfully incorporated M.T.R.P.L. Macau Ltd., a wholly-owned subsidiary, in Macau on 20th November 2023. The purpose of the subsidiary’s establishment was to penetrate the duty-free market.
M.M.L. is incorporated with the intention of bidding on tobacco and alcohol businesses at Macau International Airport that are duty-free. An open tender was held in August 2023 by Macau International Airport (M.F.M.) for duty-free spirits and tobacco services sub-concession. As stated in the tender document, bids must be submitted by 29th November. It noted that M.F.M. was seeking an operator to operate duty-free spirits, optionally with or without general merchandise retail services (but no perfume and cosmetics).
Up to 6 million passengers can be accommodated at the Macau International Airport each year. The Ports-to-Edible Oil group of Adani has recently branched out into more modern industries like media, data centres, cement, and telecom. In 2019, the company joined the airport industry after obtaining contracts for the management and operation of seven airports: Ahmedabad, Lucknow, Mumbai, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram.
According to its website, Adani Airport Holdings Ltd., a division of Adani Enterprises, is the largest airport infrastructure firm in the nation, managing and developing 8 airports that account for 25% of passenger foot traffic and 33% of air cargo traffic in India.
