Mumbai: Shares of Adani Group’s companies have lost about Rs 3.6 lakh crore in market value after the worsening of a selloff triggered by US short seller Hindenburg Research’s report accusing the ports-to-power conglomerate of stock manipulation and accounting fraud.
Adani Group companies plunged up to 20% and hit their lower circuits in the wake of a short-seller attack on the conglomerate, which also dragged down financials.
Adani stocks, namely Adani Transmission, Adani Green Energy, Adani Wilmar, Adani Power and Adani Total Gas tanked up to 20 per cent to hit their lower circuit levels. In addition, shares ACC, Ambuja Cements and NDTV also tanked in a rub-off effect.
Only Adani Ports and Special Economic Zone and the group’s flagship Adani Enterprises traded close to their lower price bands of 25 per cent and 20 per cent, respectively. Adani Ports crashed 24.70 per cent to hit a day low of Rs 536.85, just shy of its lower circuit of Rs 534.70. Adani Enterprises nosedived 19.73 per cent to hit a day low of Rs 2,720.90, a little above than its lower price band of Rs 2,711.90.
“Adani stocks are likely to continue under pressure due to the fallout from the Hindenburg report. The elevated valuations of Adani stocks are a serious concern,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Only Adani Ports and Special Economic Zone and the group’s flagship Adani Enterprises traded close to their lower price bands of 25 per cent and 20 per cent, respectively. Adani Ports crashed 24.70 per cent to hit a day low of Rs 536.85, just shy of its lower circuit of Rs 534.70. Adani Enterprises nosedived 19.73 per cent to hit a day low of Rs 2,720.90, a little above than its lower price band of Rs 2,711.90.
Hindenburg’s report alleging accounting frauds, stock manipulations and money laundering by the Adani group wiped out Rs 2.37 lakh crore from the group market capitalisation (m-cap) in just two days.
In total, the m-cap of 10 Adani Group stocks has declined 12 per cent to Rs 16.83 lakh crore from Rs 19.20 lakh crore as on January 24.
Adani group said that the timing of the Hindenburg report’s publication “clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.”
