Adani Group’s share prices took another plunge on the morning of February 3, when shares of Adani Enterprises opened with a nearly 10% dive. Shares of Adani’s other companies also seemed to be in lower circuit in the morning trade. Adani Group’s loss in the market exceeded 100 billion dollars While the stocks continued their downtrend with most hitting the lower circuit on Thursday, February 2, a day after the billionaire chairman of Adani Enterprises Ltd. called for $2.5 billion Or the ₹20,000 crore fully subscribed share sale (FPO) in a late-night announcement.
Group shares and Mr Adani’s personal wealth fall after US short-seller Hindenburg Research published a bad report on 24 january Accusing the Ahmedabad-based group of engaging in “brazen stock manipulation and accounting fraud” over decades, it also flagged its “substantial debt”.
Mr Adani made a video statement on Twitter before the market opened on Thursday morning to reassure investors and explain the unprecedented closure of the follow-on public offer (FPO) last night. The entrepreneur said that while the decision to cancel the FPO “surprised many”, the group’s board felt it was “not ethical” to go ahead with the share sale given the “volatility of the market” witnessed on Wednesday. Will happen”.
How volatile has Adani shares been?
The Adani group is facing a crisis of confidence as shares of most of its companies have plunged since the release of the Hindenburg report, despite the group dismissing the short-seller’s claims, publishing a detailed 413-page rebuttal of the report has gone. , and the chairman himself is trying to instill confidence among investors. Here’s a roundup of what has changed in Adani’s shares since the day the report was released:
25 JanuaryShares of all 10 listed companies of the Adani group, including recently acquired cement (ACC and Ambuja) and media units (NDTV), fell across the board on Wednesday following concerns raised by Hindenburg on January 24. January 25, with losses ranging from 1.5% to 8%. The share price of the group’s flagship company Adani Enterprises closed at ₹3,389.85 on the Bombay Stock Exchange on January 24, down from ₹3,442.75.
27 January: As soon as the market opened on Friday, January 27, after a day’s holiday on account of Republic Day, all Adani scrips extended their closing time. Shares of Adani Enterprises fell 18.52% on the BSE. Adani Ports declined 16%, Adani Power 5%, Adani Green Energy 19.99% and Adani Total Gas 20%. It was also the day that the bidding for the now closed FPO of Adani Enterprises began. The firm had set a price of ₹3,112 ($38.22) per share and a cap of ₹3,276 for the share sale, but on the opening day of the offer, the stock fell to ₹2,721.65, well below the lower end. price offered.
30 January: After the markets closed for the weekend, Adani Enterprises saw a sharp gain of up to 10 per cent before closing with a marginal gain of 4.8 per cent on Monday, January 30, while other group stocks continued their decline.
Despite recovery from pre-weekend stock rout, Adani Enterprises ended at ₹2892.8 on NSE, while other Adani portfolio companies- Adani Power, Adani Green Energy, Adani Wilmar, Adani Total Gas and NDTV only offloaded sellers on their counters on Monday. saw. , The group’s gas and clean energy arm both declined 20%, while Adani Transmission declined 15%. The rest of the companies mentioned above were imposed a lower circuit of 5 per cent.
Read also: Explained | Adani Group Shares: What is Hindenburg Research and How Short Seller Works?
31 January: The now closed $2.5 billion FPO by Adani Enterprises was fully subscribed by Tuesday, January 31, which helped it close at ₹2,975 on BSE as compared to Monday’s ₹2878.50, but it is still the lowest share price Stayed below Offered by FPO. On the NSE, Adani Enterprises closed 2.8 per cent higher at Rs 2,973.90, while a few others also made gains- 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: While the Union Budget 2023-24 was presented during the day on Wednesday, 10 listed firms of the Adani Group saw massive losses as stocks fell 3 to 28% on reports deepening the crisis. The combined market value of the group’s shares had fallen over 35% in just five trading sessions till Budget Day.
Shares of Adani Enterprises closed 28.45% down at ₹2,128.70 on the BSE, while Adani Ports plunged up to 19.69%; Wednesday was the worst day on record for both companies.
February 2: Heavy sell-off the night before failed to save the stocks as the share price of Adani Enterprises fell 26.5% to close at a low of ₹1,564.70 on BSE. Barring Ambuja Cement, all other shares of its listed entities saw a fall of 5-18% on Thursday.
How much loss has the Adani group suffered?
On 2 February, Adani Group’s market losses had crossed $100 billion from 24 January. As of Friday, January 27, Adani Group’s listed companies, excluding cement and media units, had lost a combined $48 billion in market capitalization. According to Bloomberg, the three-day selloff managed to erase about $72 billion in the group’s market value as of January 30. The combined losses of all the companies reached $92 billion on Budget day or till February 1, with Adani Total Gas being the worst hit with $27 billion. billion loss. Shares of Adani Total Gas have also declined by 56%, the biggest ever since January 24.
The stock’s fall forced some international lenders to take a cautious approach with Citigroup and Swiss lender Credit Suisse stopping the extension of margin loans to their customers against securities of Adani group firms.
In addition, Reuters reported that markets regulator the Securities and Exchange Board of India (SEBI) has launched an investigation into any suspected violations in the canceled FPO and is also reportedly probing allegations that Adani entities are related parties. failed to declare the transactions as required and used a vast network. Offshore entities based in tax havens, all claims were denied by the group.
Mr Adani’s personal wealth has also taken a significant blow as he slipped to 16th place in the ranking of the world’s richest person according to Forbes list on Thursday, down from third place last week. The billionaire also lost the title of Asia’s richest person to rival billionaire Mukesh Ambani, according to the Bloomberg Billionaires Index. By February 1, a whopping $44 billion had evaporated from his personal gains.