Adani’s Acquisition Of Trainman & Challenge To IRCTC: Key Points

By the end of February 2023, Adani Enterprises' shares tanked to around Rs 1,195 apiece levels on the NSE after Hindenburg Research report-induced sell-off.

New Delhi: Billionaire Gautam Adani-led Adani Enterprise will soon start selling online train tickets and challenge the monopoly of Indian Railway Catering and Tourism Corporation (ITCTC) in the online train ticket booking business. The ports-to-power conglomerate declared its intentions on Friday and informed Indian stock market exchanges that it has signed a share purchase agreement for the acquisition of a 100 per cent stake in Stark Enterprises Private Limited — an online train ticket booking platform.

• “With reference to the captioned subject (Intimation for the execution of Share Purchase Agreement in relation to acquisition of 100% stake in Stark Enterprises Private Limited), we would like to inform you that Adani Digital Labs Private Limited (“ADL”), a wholly-owned subsidiary of the Company has signed a Share Purchase Agreement (“SPA”) in relation to its proposed acquisition of 100% stake in Stark Enterprises Private Limited (“SEPL”), also known as Trainman, an online train booking and information platform,” said Adani Enterprises in a regulatory filing.
• Informing about the purpose of the agreement Adani Enterprises said, “The SPA records the terms of agreement with respect to acquisition of 100% equity shares of SEPL and the inter se rights and obligations and other matters in connection therewith.”
• By the end of February 2023, Adani Enterprises’ shares tanked to around Rs 1,195 apiece levels on the NSE after Hindenburg Research report-induced sell-off. Adani Enterprises is currently bouncing back from its year-to-date (YTD) lows. On Friday, Adani Enterprises’ share price ended at around Rs 2,505 apiece, logging more than 100 per cent rise in less than four months.
• Meanwhile, IRCTC share price has remained under the base building mode after ushering in November 2022. However, IRCTC share price has given some upside movement in the last month, delivering around 9 per cent return in the last month.
• Recently, IRCTC share price has given a breakout at Rs 645 per share level and closed at ₹666 apiece levels on NSE after the end of Friday deals.