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Business News/ News / India/  Adani stocks: 4 fresh blows to Group in last 24 hours after $108 billion loss in market value
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Adani stocks: 4 fresh blows to Group in last 24 hours after $108 billion loss in market value

S&P Dow Jones Indices said it would remove Adani Enterprises from widely used sustainability indices, effective February 7

People wait to cross a road in front of the logo of the Adani Group installed at a roundabout on the ring road in Ahmedabad, India (REUTERS)Premium
People wait to cross a road in front of the logo of the Adani Group installed at a roundabout on the ring road in Ahmedabad, India (REUTERS)

Challenges continued for Gautam Adani-led Adani Group in the last 24 hours as the crisis shockwaves spread after the week-long rout in Adani Group stocks, triggered by the report from the US-based short seller Hindenburg, which erased more than $108 billion in market value as of Thursday.

Global index S&P Dow Jones Indices on Thursday said that it would remove shares of Adani Enterprises from widely used sustainability indices, effective February 7, which would make the shares less appealing to sustainability-minded funds. 

In addition, stock exchange National Stock Exchange (NSE) said it has placed on additional surveillance measure (ASM) framework on shares of Adani Enterprises, Adani Ports and Ambuja Cements, which means that the stocks are subject to more stringent rules. They cannot be pledged and are also forbidden from intraday leverages like cover orders and bracket orders, among others.

Further, NSE has also put two Adani Group stocks Adani Ports and Special Economic Zone Limited and Ambuja Cements under futures and options (F&O) ban on Friday. 

However, Adani Group Chairman Gautam Adani is in talks with lenders to prepay and release pledged shares as he seeks to restore confidence in the financial health of his conglomerate, Bloomberg News reported on Thursday, which led to a rally in the Group dollar bonds.

In a surprise U-turn, Adani called off the 20,000 crore follow-on public offer (FPO) of its flagship company as stocks rout sparked by Hindenburg's report intensified, despite the FPO being fully subscribed. Since Hindenburg's report on January 24, group companies have lost nearly half their combined market value. 

Gautam Adani, who last year became the world’s second-richest man, is now no longer Asia's richest person. He has slid to 17th in the Forbes rankings of the world's wealthiest people and number 21 on the Bloomberg Billionaires Index, as of February 2, 2023. His rival and Reliance Industries Ltd's (RIL) chairman Mukesh Ambani is now Asia's richest person.

SGX Nifty indicates a flat-to-positive opened for the Indian stock market on Friday, though, the upside could be limited by the ongoing rout in Adani group stocks.

(With inputs from agencies)

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Published: 03 Feb 2023, 08:33 AM IST
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