Adani Total has fallen 85% this year, reaches Hindenburg's target price

With an 85% drop in stock, Adani Total's valuation matches Hindenburg's forecast, said Bloomberg in a news report. Adani Total Gas Ltd is the first of the group's seven listed firms to reach that price, having been alerted to an 85% downside in Adani shares nine months ago by US short seller Hindenburg Research.

The conglomerate's city-gas distributor's shares fell 2.6% to 575.7 rupees on Monday, extending their losses from their closing price of 3,891.75 rupees on January 24 to 85%, according to Bloomberg report.

Adani Total Gas has been impacted the worst, despite the fact that bonds and shares of other Adani companies have since rebounded, especially when the ports-to-power group got funding from GQG Partners.

Also Read: Adani-Hindenburg Case: Sebi requests OCCRP for documents, refused

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The state government of New Delhi recently issued a policy mandating the conversion of all commercial cars to electric vehicles by 2030, which presents a new challenge for the company, said Bloomberg in its news report. About 6% of its shares have dropped this month.

Delhi Transport Minister Kailash Gahlot said on Friday that the Electric Vehicles Policy 2.0 is the final one which aims to target commercial vehicles to reduce pollution in the capital city. Kailash Gahlot said all vehicles have to be electric beyond 2030.

Last month, speaking about the Electric Vehicles Policy 2.0, Kailash Gahlot had said that the Electric Vehicles Policy 2.0 will look at incentivising retrofitting of vehicles considering its high cost.

Also Read: All vehicles have to be electric beyond 2030: Delhi minister on EV Policy 2.0

In a report released on January 24, Hindenburg Research accused the company of widespread corporate wrongdoing, which at one time caused a decline in market value of over $150 billion. 

All misconduct has been refuted by the Adani Group, where it 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.

An early report from a panel established by the Indian Supreme Court in May stated that it could not find any proof of stock-price manipulation.

Also Read: Adani-Hindenburg Case: Supreme Court defers hearing till October 20; stocks trade lower