Adani shares market cap falls below ₹10 lakh crore as Hindenburg debacle wipes out half of group's value

 

• Shares of Adani Group declined on Friday, with shares of flagship company Adani Enterprises falling over 25%

The week-long stock rout in Gautam Adani's companies continued on Friday as shares declined on the spread of crisis shocks, triggered by a report from US-based short seller Hindenburg. All the group's stocks fell in the early session and their market cap declined below ₹10 lakh crore, or more than half of their combined value since January 24. The group stock market cap was above ₹16 lakh crore before the research report.

Shares of flagship firm Adani Enterprises saw their biggest-ever intra-day fall as the stock plunged nearly 25% on Thursday after the S&P Dow Jones Indices said it would outperform widely used sustainability indices. to delist the shares of Adani Enterprises, effective February 7. That would make the shares less attractive for stability-minded funds.

Adani Ports and Special Economic Zone was down 14%, while Adani Transmission and Adani Green Energy were down 10% each. Adani Total Gas, which has a joint venture (JV) with France's Total Energy SE, fell 5%.

The National Stock Exchange (NSE) on Thursday put the additional surveillance measures (ASM) framework on three Adani group stocks -- Adani Enterprises, Adani Ports and Ambuja Cements -- leading to a fall in the stocks, making them subject to more stringent regulations.

Hindenburg Research last week accused the Adani group of "brazen" market manipulation and accounting fraud, claiming that a web of Adani-family controlled offshore shell entities in tax havens were used for corruption, money laundering and taxpayer evasion. was done to promote what the group was dubbed. 'Unfounded'.

The group had closed its Rs 20,000-crore follow-on public offer (FPO) on Wednesday, a day after it was fully subscribed. Its chairman Gautam Adani had said on Thursday that it would not be "ethically correct" to go ahead with the share sale in the current market situation. “Our balance sheet is healthy and assets, strong. Our EBITDA levels and cash flows have been very strong and have an impeccable track record of servicing our debt obligations. We will continue to focus on long-term value creation and growth will be managed by internal resources," he added.