Six Adani Group companies – Adani Enterprises Ltd, Adani Total Gas Ltd, Adani Transmission Ltd, Adani Green Energy Ltd, Adani Power Ltd, and Adani Wilmar Ltd - slumped 5% each on Monday's trade.
At 13:00 IST, shares of Adani Enterprises further fell and was down over 9%. On the other side, shares of Adani Ports & Special Economic Zone Ltd were trading in the green zone initially and was up by nearly 1% but eventually fell into the red zone.
According to Prashanth Tapse, Research Analyst, Senior Vice President Research of Mehta Equities, Adani Ports & Special Economic Zone is the only cash cow business model that has been trading in contra direction to markets in the last few days, due to its business update on cargo handling, which crossed 300 million metric tonne (MMT) last weekend.
Since the release of the Hindenburg Research report on January 24, until February 27, the stock price of Adani Enterprises fell by 65%, Adani Total Gas slumped by 81.5%, Adani Transmission by 75.5%, Adani Wilmar by 40%, Adani Ports & Special Economic Zone by 26%, Adani Green Energy by 75.9%, and Adani Power by 49%.
|Scrip Name||Closing Price on Jan 24 (in Rs)||Current Market price (Rs) on Feb 27 (12:30 pm)||% (loss)|
|Adani Total Gas||3,891||715.95||81.5%|
|Adani Green Energy||1,916||462.45||75.9%|
|Adani Ports and SEZ||761||561||26%|
Adani Total Gas, Adani Green Energy, and Adani Transmission recorded a new 52 week low today, while Adani Wilmar was trading near its 52-week low.
"Investors are most negatively impacted. Investors today demand clarity, and if you remain quiet, the investors will lose faith in the market. It is crucial for the Adani Group to convey the precise reason behind the stock price decline. The stocks of Adani Group companies are moving in lower circuits and is nearly down 5% daily. Request should be made to the group and also to the regulator to clarify. It will help in stabilising the free fall in stock price, address those serious concerns and restore the confidence of investors," said Deven Choksey, managing director at KR Choksey.
Also Read: Hindenburg saga: It may take six months for Adani Group firms to recover, says Profitmart's Avinash Gorakshakar
Further, according to a Bloomberg report, the Adani Group will commence its meetings with fixed-income investors in Asia this week, in an attempt to limit the fallout from claims of accounting fraud and stock manipulation made by shortseller Hindenburg Research.
"About a dozen global banks will help host the investor meetings at Singapore’s Capitol Kempinski hotel Monday. The conglomerate backed by billionaire Gautam Adani will then hold meetings in Hong Kong at the Barclays Plc office on Tuesday and Wednesday. Due to attend are group chief financial officer Jugeshinder Singh and corporate finance head Anupam Misra," said the report.
Also Read: Three Adani Group stocks plummet up to 80% in a month; m-cap drops below ₹6.5 lakh crore