Six Adani Group companies – Adani Total Gas, Adani Transmission, Adani Enterprises, Adani Green Energy, Adani Power and Adani Ports – lost nearly ₹94,000 crore in market capitalisation in the third week of February.
This is the fourth week of net losses in m-cap for the Adani Group companies after the release of the Hindenburg Research report that accused the Indian giant of stock manipulation and accounting fraud.
The fall in the fourth week comes despite the group claiming that its companies faced no material refinancing risk.
Adani Enterprises Ltd lost market cap worth ₹13,543 crore, whereas Adani Green Energy Ltd suffered a loss of ₹14,976 crore. Adani Power Ltd market cap fell about ₹3,484 crore, and Adani Ports & Special Economic Zone Ltd lost ₹1,423 crore.
Adani Wilmar Ltd was the sole gainer in the current week with an increase in the market cap of ₹297 crore.
On Thursday, Adani Power called off its plan to acquire DB Power, as per media reports.
According to media reports, DB Power Ltd and the Adani Group company mutually decided not to move through with the transaction after a long-stop deadline passed on Wednesday.
In the beginning of 2023, the seven listed firms of Adani Group had a market cap of around ₹18.23 lakh crore. Taking the current market price of all listed firms into account, the group has lost about 58% till date.
In 2022, the market cap of Adani Group companies jumped ₹7.82 lakh crore or 75% to ₹18.23 lakh crore.
This week, shares of Adani Total Gas and Adani Transmission lost about 22%, while Adani Power, Adani Enterprises, Adani Green Energy, and Adani Ports lost 1% to 13%. Adani Wilmar gained about 0.5%.
According to Avinash Gorakshakar, Head Research of Profitmart Securities, it might take another six months for all of the Adani Group companies to recover from the recent price correction.
"Since all of the Adani companies are high beta equities and this is an election year, there will also be market volatility. In my opinion, nothing is going to change immediately, and management is doing everything they can to pacify the investors," added Gorakshakar.
Since the release of the Hindenburg Research report on January 24, until February 13, the stock price of Adani Enterprises fell by 50.44%, Adani Total Gas slumped by 69.29%, Adani Transmission by 59.12%, Adani Wilmar and Adani Ports & Special Economic Zone by over 27%, Adani Green Energy by 64.10%, and Adani Power by 43.20%.