How much has the Adani Group suffered since the Hindenburg Report?

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Adani Group’s share prices took another tumble on the morning of February 3 when shares of Adani Enterprises opened nearly 10% lower. Stock prices of other Adani companies were also hitting the lower circuit in the morning trade. Market loss of Adani Group exceeded $100 billion. While stocks continued to slide on Thursday, February 2, a day after the billionaire chairman of Adani Enterprises Ltd. Closes $2.5 billion. or ₹ 20,000 crore in a fully subscribed share sale (FPO) late night announcement.

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The group’s stock and Mr Adani’s personal wealth have fallen since the US short seller. Hindenburg Research Published a Harmful report on January 24 Accusing the Ahmedabad-based conglomerate of indulging in “vulgar stock manipulation and accounting fraud” over decades, it also lambasted its “substantial debt”.

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Mr Adani made a video statement on Twitter before markets opened on Thursday morning to reassure investors and explain the unusual termination of the follow-on public offer (FPO) the night before. The businessman said that while the decision to end the FPO “may have surprised many”, the group’s board felt that given the “market volatility” seen on Wednesday, the shares It “would not be morally right” to push the sale.

How volatile has Adani stock been?

The Adani Group is facing a crisis of confidence as the stocks of most of its companies have fallen since the release of the Hindenburg report, despite the group denying claims of short sellers, 413 of the report. Published a detailed rebuttal containing pages. , and the chairman himself is trying to instill confidence in investors. Here’s a roundup of how Adani’s stock has changed since the day the report was released:

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January 25: Following concerns raised by Hindenburg on January 24, shares of all 10 listed Adani group companies, including its recently acquired cement (ACC and Ambuja) and media units (NDTV), on Wednesday fell across the board. January 25, with losses ranging from 1.5% to 8%. Shares of Adani Enterprises, the group’s flagship company, closed at ₹3,389.85 on January 24, down from ₹3,442.75 on the Bombay Stock Exchange.

January 27: As markets opened on Friday, January 27 after a day off on Republic Day, all Adani stocks extended their closing hours. Shares of Adani Enterprises fell 18.52 percent on the BSE. Adani Ports was the worst hit with a fall of 16 percent, Adani Power 5 percent, Adani Green Energy 19.99 percent, and Adani Total Gas 20 percent. It was also the day the bids for the now-defunct Adani Enterprises FPO were floated. The firm had set a floor price of ₹3,112 ($38.22) a share and a cap of ₹3,276 for the share sale, but on the first day of the offering, the stock fell to ₹2,721.65, well below the lower end. Price offered.

January 30: After markets closed for the weekend, Adani Enterprises saw a sharp gain of up to 10 percent before settling with a modest gain of 4.8 percent on Monday, January 30, while other group stocks continued their slide.

Despite recovering from the pre-weekend stock rout, Adani Enterprises ended at ₹2,892.8 on the NSE, while other Adani portfolio companies – Adani Power, Adani Green Energy, Adani Wilmar, Adani Total Gas, and NDTV only closed on Monday. Watch the vendors gather at their counters. . The group’s gas and clean energy both fell 20 percent, while Adani Transmission fell 15 percent. The rest of the aforementioned companies hit the 5% lower circuit.

Also read: Explanation | Adani Group Stock: What is Hindenburg Research, and How Does a Short Seller Work?

January 31: The now called $2.5 billion FPO by Adani Enterprises was fully subscribed by Tuesday, January 31, helping it close at ₹2,975 on the BSE, against Monday’s close of ₹2,878.50, but It still remained below the floor share price. Presented by FPO. On the NSE, Adani Enterprises closed up 2.8% at ₹ 2,973.90, while some others also gained – Adani Transmission (3.85%), Adani Green Energy (2.94%), ACC Cements (3.37%), and NDTV (1.87%). . Meanwhile, three other arms, Adani Power (down 4.99%), Adani Wilmar (down 5%), and Adani Total Gas (down 10%) remained under selling pressure.

February 1st: When the Union Budget 2023-24 was presented during the day on Wednesday, Adani Group’s 10 listed firms saw massive losses as stocks tumbled between 3 and 28 per cent, deepening the crisis triggered by the report. done The combined market value of the group’s shares had fallen more than 35 percent in just five trading sessions leading up to Budget Day.

Shares of Adani Enterprises fell 28.45 percent to close at ₹2,128.70 on the BSE, while Adani Ports fell 19.69 percent. Wednesday was described as the worst day on record for both companies.

February 2: Ending a massive sell-off in shares the night before failed to save the stock as Adani Enterprises shares fell another 26.5% to end at a low of ₹1,564.70 on the BSE. Apart from Ambuja Cement, all other stocks of its listed entities saw declines, which fell between 5-18 percent on Thursday.

How much loss has Adani Group suffered?

On February 2, Adani Group’s total market losses since January 24 crossed $100 billion. As of Friday, January 27, Adani Group’s listed companies, including the cement and media arms, had collectively lost $48 billion in market capitalization. The three-day sell-off wiped about $72 billion off the group’s market value as of Jan. 30, according to Bloomberg. The combined loss of all companies till Budget Day or February 1 reached $92 billion, with Adani Total Gas the worst hit with $27. Billions lost Adani Total Gas shares also suffered their biggest drop since January 24 by 56 percent.

The stock rout has forced some international lenders to take a cautious approach with Citigroup and Swiss lender Credit Suisse halting the extension of margin loans to their clients against securities of Adani Group firms.

Also, Reuters reported that market regulator Securities and Exchange Board of India (SEBI) has launched an investigation into any suspected irregularities at the defunct FPO and is also reportedly investigating allegations that Adani entities failed to disclose related party transactions as required and used a wide network. The party denied all claims of offshore entities based in tax havens.

Mr Adani’s personal wealth also suffered a significant blow as he fell to 16th place on Thursday’s Forbes list of the world’s richest people, up from third place last week. The billionaire also lost the title of Asia’s richest man to Mukesh Ambani, according to the Bloomberg Billionaires Index. As of February 1, a total of $44 billion had evaporated from his personal climate gains.

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