Despite a volatile trading session on Friday, shares of Adani Enterprises Ltd, Adani Ports & Special Economic Zone Ltd, and Ambuja Cements Ltd all ended the day in green. Shares of Adani Ent gained ₹2,289 crore in market-cap while that of Adani ports & Special Economic Zone added ₹9,666 crore in market-cap, and Ambuja Cements added ₹4,178 crore market-cap on Friday's trade.
After Adani Enterprises and Adani Ports & Special Economic Zone recorded a new 52-week low today, the stocks closed 1.38% and 7.87% higher, respectively. Shares of Ambuja Cement closed 5.97% higher.
In the early trade today, shares of Adani Enterprises slumped 27%, while Adani Ports & Special Economic Zone Ltd, and Ambuja Cements Ltd fell 2-8% after National Stock Exchange (NSE) placed them under short-term additional surveillance measure (ASM) framework on Thursday amid heavy sell off in the last few trading sessions. This framework would be effective from February 3.
At 10:49 IST, the Adani Enterprises stock slumped 35% and recorded a new 52-week low. The stock hit a intraday low of ₹1,017.45 and high of ₹1,490. The shares slowly started to recover and at 11:15 IST was trading down over 26%. At 13:01 IST, shares of Adani Enterprises recovered was trading 14% lower.
Shares of Adani Ports & Special Economic Zone hit an intraday low at ₹395.10.
Since Wednesday, January 25 until Friday10:30 IST, Adani Enterprises lost market cap worth ₹2,55,811.95 crore, Adani Port lost market cap worth ₹94,867.24 crore, and Ambuja Cements lost around ₹33,974 crore.
Fitch Ratings stated on Friday that there has been no immediate impact on the ratings of Adani Group entities and their securities following Hindenburg's report alleging misconduct at the company. According to the rating agency, it doesn't anticipate any significant adjustments to its projected cash flow.
The ratings agency stated that as part of its ongoing monitoring, it would pay close attention to any significant changes in the rated entities' access to financing or cost of financing over the long term, as well as any unfavourable regulatory or legal developments or ESG-related issues that might have an impact on credit profiles.
CRISIL Ratings had previously stated that it is maintaining "constant surveillance" on all of the group firms' outstanding ratings.
"There shall be ASM on securities with surveillance concerns based on objective parameters viz. Price / Volume variation, Volatility etc," said NSE. According to a circular from NSE, the three companies meet the requirements for inclusion under ST-ASM Stage 1.
Short-selling and speculative trading are being restricted by this move of NSE. Investors will be required to pay 100% upfront margin even for intraday trading when trading stocks under the short-term ASM framework.
After the Indian group's flagship company on Wednesday, cancelled its ₹20,000-crore public offering on the backdrop of Hindenburg's criticisms, the market losses of Adani Group on Thursday grew to almost $100 billion.
Further, on Thursday, S&P Dow Jones Indices said that, starting on February 7, it would remove Adani Enterprises from prominent sustainability indices. This presented another problem for Adani.
According to a report by Bloomberg, Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares in an effort to restore trust in the soundness of his conglomerate's finances.
