Shares of Adani Group fell by up to 20 percent on Friday, eroding the combined market valuation of listed companies by Rs 4.17 lakh crore. This is the second consecutive trading day after the US financial research company Hindenburg Research made several allegations against the group, when its companies’ shares were broken.
The Hindenburg report accused the group led by industrialist Gautam Adani of indulging in “blatant stock manipulation and accounting fraud”. After this allegation of the company, there was a big fall in the shares of the listed companies of the diversified business group.
Fell of Adani Group Shares
Loss of more than 4 lakh crores in 2 days: Shares of Adani Total Gas fell by 20 percent on BSE, Adani Transmission by 19.99 percent, Adani Green Energy by 19.99 percent and Adani Enterprises by 18.52 percent. At the same time, shares of Adani Ports and Special Economic Zone fell by 16.03 percent, Adani Wilmar by 5 percent and Adani Power by five percent. Shares of Ambuja Cements fell 17.16 percent and ACC shares fell 13.04 percent. Within two days, the market valuation (MCAP) of Adani group companies has declined by Rs 4,17,824.79 crore.
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The market valuation of Adani Total Gas declined by Rs 1,04,580.93 crore, while that of Adani Transmission declined by Rs 83,265.95 crore. The market valuation of Adani Enterprises declined by Rs 77,588.47 crore, while Adani Green Energy lost Rs 67,962.91 crore and Adani Ports lost Rs 35,048.25 crore.
The market valuation of Ambuja Cements declined by Rs 23,311.47 crore, Adani Power by Rs 10,317.31 crore, ACC by Rs 8,490.8 crore and Adani Wilmar by Rs 7,258.7 crore.
Vinod Nair, Head of Research, Geojit Financial Services, attributed the major fall in the Indian market to negative research reports on companies from Asia’s richest promoter group.
The Adani Group on Thursday said it is exploring legal options for “punitive action” against US financial research firm Hindenburg Research for acting “recklessly” in an attempt to sabotage share sales of its flagship company. Used to be. At the same time, American financial research company Hindenburg Research said that it stands by its report.
The company’s head of legal affairs, Jatin Jalundhwala, said that Hindenburg Research published the report on January 24, 2023, against the group with malafide intention without any research and full information. This has adversely affected the Adani Group, our shareholders and investors. The ups and downs in the Indian stock market brought about by the report is a matter of great concern.
He said that the report and its baseless statements were nothing but designed to harm the share prices of Adani group companies.
Jalundhwala said that a foreign entity has made a deliberate and reckless attempt to mislead the investor community and the general public. He has maligned the Adani Group, its leadership and maligned the sale of the FPO (FOLLOW PUBLIC OFFER) of our flagship company Adani Enterprises. We are deeply troubled by his antics.
He said that we are looking into settlement and punitive action against Hindenburg Research under US and Indian law. Earlier on Wednesday, American financial research firm Hindenburg had said that after two years of its research, it had found that the Adani group had been involved in “blatant stock manipulation and accounting fraud” for decades.
