Three Adani Group companies -- Adani Power, Adani Total Gas and Adani Wilmar -- lost ₹33,174 crore in market capitalization on Tuesday as sell-off continued in the stocks on Hindenburg's allegations. However, other group companies' m-cap increased anywhere between ₹4,000 crore and ₹8,000 crore.
Shares of Adani Total Gas Ltd closed lower by 10% while Adani Power Ltd and Adani Wilmar Ltd were down 5% each.
In a choppy market on Tuesday ahead of the presentation of the Union Budget, the majority of seven Adani Group stocks traded in the red zone initially.
On Monday, NSE and BSE revised the circuit limits for Adani Total Gas Ltd, Adani Transmission Ltd, and Adani Green Energy Ltd to 10% from 20% on the back of heavy sell-offs in the last three trading sessions due to Hindenburg Research's allegations on the group.
However, despite a negative start for the shares of Adani Transmission Ltd, the stock recovered and gained over 6% around 10:28 IST. The stock closed 4% higher.
Adani Ports & Special Economic Zone Ltd closed up by over 2%. Adani Green closed higher by 3% and Adani Enterprises ended the day higher by over 3%.
The FPO of Adani Enterprises Ltd was subscribed 1.02 times on its final day, driven by strong response from non institutional investors (NIIs) and qualified institutional buyers (QIBs). Retail investors, however, stayed away from the FPO subscription because of the significant price difference in stock price and the FPO price band.
| Scrip Name | Closing price as on Jan 30 | Current closing price | % change | Market-cap on Monday ( ₹in crore) | Market cap as of 10:30 am ( ₹in crore) | Difference in Market-cap ( ₹in crore) | Loss in Market cap from 25-30 Jan ( ₹in crore) |
| Adani Power | 235.55 | 223.8 | -4.99 | 90,687 | 86,163 | -4,523.75 | -15,053.50 |
| Adani Enterprises | 2,892.85 | 2,974 | 3.35 | 315,321 | 324,155 | 8,834.45 | -59,846.45 |
| Adani Total Gas | 2,342 | 2,108 | -10 | 255,278 | 229,794 | -25,484.20 | -168,922.75 |
| Adani Transmission | 1,708.2 | 1,774 | 3.73 | 187,731 | 194,963 | 7,231.42 | -115,850.79 |
| Adani Green Energy | 1,189 | 1,224 | 3.06 | 185,484 | 190,928 | 5,444.40 | -113,287.20 |
| Adani Ports & SEZ | 597 | 613 | 2.67 | 160,295 | 164,497 | 4,202.02 | -43,677.51 |
| Adani Wilmar | 491 | 466 | -5 | 63,339 | 60,172 | -3,166.95 | -10,642.50 |
| Total | 1,258,134 | 1,250,671 | -7,463 | -527,280.70 |
Hindenburg Research released on January 24 accused Adani Group of participating in manipulation of stock prices and accounting fraud.
Reacting to the report the next day, Adani Group released a media statement where the company said that it was shocked that Hindenburg Research had published a report “without making any attempt to contact the company or verify factual matrix”.
"The report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India's highest courts," said the company in a report.
Also, in an interview with CNBC-TV18 on Monday, Jugeshinder Singh, CFO of Adani Group, said that they were confident that when people have digested the published report, they will see that this was a “maliciously timed purposeful falsehood” released specifically to undermine the FPO.
According to a report by financial company FTSE Russell, the Adani constituents will remain eligible in accordance with underlying index methodologies. Further, it said that it will continue to monitor information on the company, in particular by Indian regulators, for any developments.
On Monday, Abu Dhabi conglomerate International Holding Company revealed its plan to invest 1.4 billion dirhams ($381.17 million) in Adani Enterprises' follow-on public offer.
"Our interest in Adani Group is driven by our confidence and belief in the fundamentals of Adani Enterprises Ltd; we see a strong potential for growth from a long-term perspective and added value to our shareholders," IHC CEO Syed Basar Shueb said in a statement.
