Gautam Adani’s ‘milch cow’ in trouble, Iran launched a massive attack on Haifa with ballistic missiles

The fight between Iran and Israel is deepening. On Saturday, Iran fired several ballistic missiles targeting the Israeli coastal city of Haifa. Haifa is a major port in Israel in which India’s second richest man Gautam Adani has a significant investment. Haifa is also a major naval base in Israel. There are also oil refineries and several chemical factories here. Israel’s largest oil refinery is in the Haifa Bay area. Iran attacked Israel’s oil refineries and naval base in Haifa.

Adani Group has invested a lot in Israel. Along with Haifa Port, the group has also invested in the defense sector. Adani Group bought Israel’s Haifa Port in a joint venture. Adani Group’s joint venture has got the responsibility to operate this port till the year 2054. Adani Port has a 70 percent stake in this joint venture and Israeli chemical and logistics company Gadout owns 30 percent. Its effect can be seen on the shares of Adani Group on Monday.

Fall in shares

Due to increasing tension between Israel and Iran, this investment of Adani is under threat. There is an atmosphere of fear among investors as well. Its effect was also seen on the shares of Adani Group on Friday. Shares of Adani Ports, considered to be the cash cow of Adani Group, fell by more than 3% to Rs 1396. Finally, the company’s stock closed at Rs 1405.25 with a fall of 2.71 percent. Similarly, shares of the group’s flagship company Adani Enterprises also fell 2.8% to Rs 2469.55 during trading and finally closed at Rs 2505.65 with a fall of 1.36 percent.

There are many types of risks at Adani’s Haifa Port. For example, cargo may be delayed and the routes of ships may be changed. Last time there was more fighting in the southern part of Israel and Haifa located in the northern part was considered safe. But this time Iran has targeted Haifa. If the fighting continues for a long time, it can affect the trade route of the entire Mediterranean Sea. This can cause problems in work and transportation of goods.

How much is the stake

Adani Group’s Haifa Port is the most important investment in Israel. Adani Ports, along with Israel’s Gadot Group, bought 70% stake in it for $ 1.2 billion in 2023. It contributes about 3% to Adani Ports’ annual cargo volume. It is very important for Israel’s imports and exports. Earlier also, when tensions increased in this area, Adani Ports’ shares fell. Ships were facing problems in coming and going. Experts say that if the tension remains here for a long time, it can cause damage to the Adani Group.