Adani Enterprises Likely To Replace Wipro On BSE Sensex, First Adani Group Stock To Enter Benchmark; Report

Gautam Adani-led conglomerate, Adani Enterprises is expected to be included in the 30-share BSE Sensex index, replacing Wipro. This change, as reported by IIFL Alternative Research, will be officially announced on Friday, May 24, coinciding with the semi-annual rebalancing of the BSE indices.

The inclusion of Adani Enterprises in the Sensex is a landmark event, as it will be the first time a company from the Adani Group has made its way into this index. According to IIFL Alternative Research, this move is expected to generate inflows worth $118 million (nearly Rs 1,000 crore) from passive funds that track the index. This inclusion not only highlights the growing influence of Adani Enterprises in the Indian corporate space but also signifies investor confidence in its business ventures.

Adani Enterprises has gained more than 10% since January this year, including a 3% rise today. The stock was trading with gains of nearly 3% at Rs 3,227 per share on the National Stock Exchange (NSE) as of 12:10 pm. Over the past year, the stock has surged more than 30%.

For the financial year ending March 2024, Adani Enterprises declared an equity dividend of 130.00%, amounting to Rs 1.3 per share. Despite the seemingly modest dividend yield of 0.04% at the current share price of Rs 3,202.10 per share, the company has maintained a consistent track record of dividend payouts over the past five years.

Historically, Adani Enterprises has undertaken several corporate actions. The last bonus issue was in 2009, offered at a 1:1 ratio, and the share has been quoting ex-bonus since December 10, 2009. The company also split the face value of its shares from Rs 10 to Rs 1 in 2004, with the share quoting on an ex-split basis since July 28, 2004. Furthermore, in 2009, Adani Enterprises issued rights shares at a premium of Rs 474 per share in a 1:16 ratio, which has been quoted ex-rights since March 23, 2010.

Adani Enterprises has a wide-ranging business portfolio, encompassing airports, roads, water management, data centers, solar manufacturing, defense and aerospace, edible oils and foods, mining, integrated resource solutions, and integrated agri-products.

While Adani Enterprises celebrates its impending inclusion, Wipro is set to experience significant outflows worth $56 million (about Rs 500 crore) due to its exclusion from the Sensex. Despite this setback, Wipro has also shown positive market performance, with its shares trading at Rs 466.60 per share, reflecting a gain of over 1% as of 12:10 pm on the NSE. The stock has appreciated more than 16% over the last year.

For the year ending March 2024, Wipro declared an equity dividend of 50.00%, amounting to Rs 1 per share, resulting in a dividend yield of 0.21% at the current share price of Rs 466.15. Like Adani Enterprises, Wipro has a consistent dividend track record over the past five years.

Wipro's last bonus issue was in 2019, with a 1:3 ratio, and the share has been quoting ex-bonus since March 6, 2019. The company's last face value split occurred in 1999, changing from Rs 10 to Rs 2, with shares quoting on an ex-split basis since September 27, 1999.

Wipro plays in technology services and consulting, with capabilities spanning cloud computing, computer security, digital transformation, artificial intelligence, robotics, data analytics, and more. The company serves customers in 167 countries.

The anticipated reshuffle of the BSE Sensex signifies a significant shift in the composition of India's stock market index. As the official announcement approaches, all eyes will be on the BSE to witness this reshuffle and its implications for the Indian stock market.