Adani no longer a $100 billion group amid sell-off in shares post Hindenburg's claims
1 min read . Updated: 20 Feb 2023, 02:13 PM IST
Premium- The Adani Group has seen an overall mcap erosion of around $200 billion from the peak of $290 billion seen in September last year
Billionaire Gautam Adani-led Adani Group's market capitalisation (mcap) has slipped below $100 billion on Monday, tumbling over $135 billion since the explosive Hindenburg Research report released late January.
The conglomerate has seen an overall mcap erosion of around $200 billion from the peak of $290 billion seen in September last year.
The selloff in most group stocks continued today, with the group's flagship company Adani Enterprises the worst performer with as much as 9.4% drop.
Adani Total Gas, which has faced the biggest brunt, has lost more than three quarters of its value since the US-based short seller report was published on 24 January.
Adani Total was down by its limit today. It has done so each day since 27 January, according to Bloomberg data. The stock exchanges have tweaked the daily limit for the stock to 5% from 20% as the selloff worsened.
Nine of the Adani group's 10 stocks were lower in Mumbai today. Adani Green Energy Ltd and Adani Transmission Ltd also dipped by their 5% limit.
Adani Group stocks have taken a beating on the bourses after Hindenburg's bombshell report made a litany of allegations, including fraudulent transactions, corporate governance lapses and share-price manipulation, against the business empire.
The report came just as a ₹20,000 crore follow-on share sale of the conglomerate's flagship firm Adani Enterprises opened.
The Adani Group has denied these allegations, saying it complies with all laws and disclosure requirements.
Now, the ports-to-power conglomerate helmed by Adani – who used to be Asia’s richest person – is hoping to claw back the narrative with this playbook and calm jittery investors and lenders.
Adani and his aides have been in damage repair mode ever since the report released. Besides a campaign to portray themselves as responsible borrowers with prepayments and on-time payments of debt, executives have also kicked off a series of meetings to pacify overseas bondholders, who were tapped by the tycoon for more than $8 billion funding in recent years.
Adani group has maintained that its debt of ₹1.96 lakh crore as on September last year was balanced with assets it has and the revenues all the businesses are generating.
