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Business News/ News / India/  In Numbers: Here’s how Adani Group’s market cap changed since Hindenburg report
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In Numbers: Here’s how Adani Group’s market cap changed since Hindenburg report

Adani Group postponed a crucial $2.5 billion stock sale owing to market volatility, which escalated its market losses to more than $100 billion.

Gautam Adani, once “India’s richest man”, has been pushed off the list of the top-10 richest in the world. (AP)Premium
Gautam Adani, once “India’s richest man”, has been pushed off the list of the top-10 richest in the world. (AP)

According to a January 24 analysis by Hindenburg Research, seven listed Adani Group companies have an 85% downside on a fundamental basis because of extraordinarily high valuations. The report raised questions about debt levels and potential unlawful use of tax havens.

Soon after the report was released, The market capitalisation of Adani Group companies was lowered by almost 1 lakh crore as a result of a significant stock market correction. Next day, as trading restarted, Adani Group companies continued to lose money, bringing the two-day market capitalisation decrease to 4 lakh crore.

The conglomerate postponed a crucial $2.5 billion stock sale owing to market volatility, which escalated its market losses to more than $100 billion and sparked worries about a potential systemic impact. As a result, shares of Adani Group plunged even more on February 2.

If we compare how various Adani entities lost its value between January 24, when the Hindenburg report was released, and February 3, the last trading day so far; we’ll notice a significant impact.

Also Read: Chronology of Adani saga: How a turbulent storm unfolded against ‘India’s richest man’

Cement producer ACC was at 43,869 crore on January 24 and lost 17.54% to reach 36,173 crore on February 3. Adani Enterprises, the Conglomerate’s flagship company, was at 3,92,474 crore on January 24 and lost 53.98% to reach 1,80,599 crore on February 3.

Change in Adani Group’s market cap since Hindenburg report on January 24.
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Change in Adani Group’s market cap since Hindenburg report on January 24.

Adani Green Energy went from 3,03,113 crore to 1,47,988 crore, losing 51.17% of its value. Adani Ports lost 34,43% and went from 1,64,354 crore to 1,07,758 crore. Losing 30.11%, Adani Power was valued at 74,072 crore on February 3 from 1,05,989 crore on January 24.

Adani Total Gas lost 58.15% of its value and went from 4,27,326 crore to 1,78,824 crore. Adani Transmission lost 49.14% and became a 1,56,342-crore company from being a 3,07,447-crore company.

Adani Wilmar went from 74,491 crore to 52,039 crore, losing 30.14% while Ambuja Cements lost 25.04% and fell to 74,204 crore from 98,994 crore. The total market cap of Adani Group slipped 47.44% to reach 10,07,999 crore from 19,18,056 crore.

 Jan 24Feb 3CHANGE (%)
ACC43,86936,173-17.54
Adani Enterprises3,92,4741,80,599-53.98
Adani Green Energy3,03,1131,47,988-51.17
Adani Ports1,64,3541,07,758-34,43
Adani Power1,05,98974,072-30.11
Adani Total Gas4,27,3261,78,824-58.15
Adani Transmission3,07,4471,56,342-49.14
Adani Wilmar74,49152,039-30.14
Ambuja Cements98,99474,204-25.04
Total market cap19,18,05610,07,999-47.44

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ABOUT THE AUTHOR
Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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Published: 04 Feb 2023, 10:46 AM IST
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