Mumbai: Combined market value of Adani Group Despite stability in some stocks, companies fell below the Rs 10 lakh crore mark on Monday. The market capitalization of the Gautam Adani-led group has nearly halved from Rs 19.9 lakh crore recorded on January 24, when US-based short-seller Hindenburg Research Issued a shameful report.
According to market players, a release issued by the group said that its promoters were paying around Rs 9,230 crore to lenders ahead of time for releasing some of the pledged stake to raise funds, whose share price was Rs. There was a positive impact on prices.
The allegations in the Hindenburg report ranged from fraud and stock price manipulation to corporate embezzlement. Since January 25, the share prices of all the 10 Adani group companies have fallen drastically. Adani Total Gas is down 60% since Jan 24 – the biggest loss in the group. Market value of three other companies – Adani Enterprises, Adani Transmission and Adani Green Energy – has halved since January 24. BSE data shows that the remaining six companies have lost between 34% and 15% of their market value since the Hindenburg Research report.
Share prices continued to decline despite the group vehemently denying all of Hindenburg Research’s allegations. Assurance from Finance Ministry including FM reserve Bank of India And SEBI about the strength of the Indian market and the economy also failed to arrest the fall in Adani Group shares.
One of the major fallout of the slide was that the group had to withdraw its Rs 20,000-crore mega follow-on public offer (FPO) for the flagship Adani Enterprises, a day after it managed to successfully close on January 31. Last week, European banking major Credit Suisse and an arm of US financial major Citigroup voided shares from the group and refused to accept them as collateral.
Adani Enterprises ended marginally down 0.7 per cent on Monday, while ACC, Ambuja Cements and ndtv Each closed with gains of up to 2%. Whereas, Adani Transmission closed at 10 per cent lower circuit, Adani Power, Adani Total Gas and Adani Wilmar closed at 5 per cent lower circuit each. The day’s loss of market value of the group companies stood at Rs 27,000 crore.
According to market players, a release issued by the group said that its promoters were paying around Rs 9,230 crore to lenders ahead of time for releasing some of the pledged stake to raise funds, whose share price was Rs. There was a positive impact on prices.
The allegations in the Hindenburg report ranged from fraud and stock price manipulation to corporate embezzlement. Since January 25, the share prices of all the 10 Adani group companies have fallen drastically. Adani Total Gas is down 60% since Jan 24 – the biggest loss in the group. Market value of three other companies – Adani Enterprises, Adani Transmission and Adani Green Energy – has halved since January 24. BSE data shows that the remaining six companies have lost between 34% and 15% of their market value since the Hindenburg Research report.
Share prices continued to decline despite the group vehemently denying all of Hindenburg Research’s allegations. Assurance from Finance Ministry including FM reserve Bank of India And SEBI about the strength of the Indian market and the economy also failed to arrest the fall in Adani Group shares.
One of the major fallout of the slide was that the group had to withdraw its Rs 20,000-crore mega follow-on public offer (FPO) for the flagship Adani Enterprises, a day after it managed to successfully close on January 31. Last week, European banking major Credit Suisse and an arm of US financial major Citigroup voided shares from the group and refused to accept them as collateral.
Adani Enterprises ended marginally down 0.7 per cent on Monday, while ACC, Ambuja Cements and ndtv Each closed with gains of up to 2%. Whereas, Adani Transmission closed at 10 per cent lower circuit, Adani Power, Adani Total Gas and Adani Wilmar closed at 5 per cent lower circuit each. The day’s loss of market value of the group companies stood at Rs 27,000 crore.