Wednesday 5 August 2015

Foxconn Tie-Up Buzz Lifts Adani Enterprises Shares

Adani Enterprises shares jumped as much as 9.1 per cent on Wednesday on speculation that the company will form a joint venture with Taiwan-based Foxconn for investment in India. Foxconn is the world's largest contract maker of electronic products and counts Apple, Blackberry, Xiaomi and Amazon among clients.

"We are at the discussion stage only and have not signed any agreement which requires disclosure under Clause 36 of the Listing Agreement." Adani Enterprises said in a statement to the Bombay Stock Exchange.

Traders attributed the buzz of a tie-up between Adani Enterprises and Foxconn to the latter's confirmation on Tuesday about investment in India.

Foxconn founder and chairman Terry Gou said that he was looking at India with a more than ten years timeframe in mind, but had not firmed up investment figures yet. Mr Gou told Reuters in May he aims to develop 10-12 facilities in India, including factories and data centres, by 2020.

As of 11.03 a.m., Adani Enterprises shares traded 7.5 per cent higher at Rs 101.45, outperforming the broader Sensex and Nifty, which traded with 0.7 per cent gains.

No comments:

Post a Comment