- Thursday, April 18, 2024
By: Shubham Ghosh
Shares of as many as seven listed Adani Group firms continued to bleed on Friday (27) with some entities even plummeting to up to 20 per cent.
According to a report by India Today, the flagship Adani Enterprises fell nearly six per cent even as its follow-on public offer (FPO) kicked off the same day. Adani Transmission fell 17 per cent, Adani Sports & SEZ by almost 10 per cent, Adani Green Energy nearly 15 per cent and Adani Total Gas by 20 per cent.
Adani Wilmar and Adani Power hit their lower circuits of five per cent, the report said.
Besides, two cement companies of the Adani Group — ACC and Ambuja Cement — also fell in the range of 9-11 per cent.
The shares of NDTV, the Indian broadcasting platform that the Adani Group acquired recently, also hit a lower circuit of five per cent.
The report warned that the Adani Group companies’ market capitalisation was likely to receive a major blow if share prices did not recover by the end of Friday’s trading session.
In Wednesday’s (25) trading session, the companies of Adani Group lost a cumulative market cap of Rs 1 lakh crore (£9.9 billion). The India Today report added that as of Friday, shares of 10 Adani Group companies saw a cumulative market share fall of Rs 2.37 lakh crore (£23.4 billion).
Shares of listed Adani Group firms have seen a free fall for two consecutive trading sessions in the wake of an explosive report by US short-seller firm Hindenburg Research which triggered panic among investors.
Our response to Adani: pic.twitter.com/6NcFKR8gEL
— Hindenburg Research (@HindenburgRes) January 26, 2023
Hindenburg has accused the conglomerate owned by billionaire Gautam Adani, Asia’s richest man, of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
“Even if you ignore the findings of our investigation and take the financials of Adani Group at face value, its seven key listed companies have 85 per cent downside purely on a fundamental basis owing to sky-high valuations,” the report said.
The Adani Group strongly reacted to the Hindenburg report, saying it was completely “baseless” and released with “malicious” intent to tarnish the prospect of the Adani Enterprises FPO.
