New Delhi: Shares of Adani Group firms continued to slump Wednesday. The Adani Group have lost more than Rs 7 lakh crore of their combined market capitalisation in the last five trading sessions amid concerns over US-based short seller Hindenburg Research’s report. The decline is about 38 per cent compared to the market valuation at the end of trading January 24, the day when the report was released.
Adani Group stocks have taken a beating on the bourses after Hindenburg in the report made a litany of allegations. Among the allegations were fraudulent transactions and share price manipulation, at the Gautam Adani-led group.
At the end of Wednesday’s trading session, all the group companies settled in negative territory with shares of three companies hitting their lowest price band.
Shares of Adani Enterprises nosedived 28.45 per cent to close at Rs 2,128.70 on the BSE despite the company’s Rs 20,000-crore share sale sailed through on the last day Tuesday after non-retail investors bid in big volumes. There was, however, a muted response from retail investors and company employees. The share sale opened January 24.
Also read: Fraud cannot be obfuscated by nationalism: Hindenburg retaliates to Adani
The counter of Adani Ports and Special Economic Zone (SEZ) plunged 19.69 per cent, Adani Total Gas slumped 10 per cent, Adani Green Energy declined 5.78 per cent, Adani Wilmar fell 4.99 per cent, Adani Power dropped 4.98 per cent and Adani Transmission (2.46 per cent)
In addition, Ambuja Cements tanked 16.56 per cent, while ACC dropped 6.34 per cent and NDTV went down 4.98 per cent.
“With investors hoping for a breather following the successful closure of the Adani Enterprises FPO yesterday (Tuesday), it was another shocker when news emerged today that Credit Suisse has stopped accepting bonds of Adani Group as collateral for margin loans to its private banking clients. With several questions being raised about the group, it looks prudent to stay away from these companies till the dust settles,” said Manish Chowdhury, head of research at Stoxbox.
