NEW DELHI: Rout in Adani Group stocks escalated on Wednesday, with shares of all 10 listed entities ending in the red and wiping out investors’ wealth by over Rs 51,000 crore. The port-to-power conglomerate’s flagship firm Adani Enterprises was the top loser in the Adani pack and Nifty50 index.
The scrip ended 11% lower to close Wednesday session at Rs 1,397.50. Five other group stocks - Adani Transmission, Adani Total Gas, Adani Power, Adani Wilmar, and Adani Green - were locked in their 5% lower circuit limits. Adani Power fell 5% and NDTV also hit a lower circuit of 5%. Shares of Adani Ports & SEZ and ACC fell 7% and 4%, respectively.
Since the release of Hindenburg Research report on January 24, the combined market capitalisation of the Group has plunged by Rs 11.62 lakh crore to Rs 7.58 lakh crore. Adani Group’s m-cap was valued at Rs 19.20 lakh crore on January 24.
Hindenburg, the US-based short-seller, has made allegations of stock manipulation, lapses in corporate governance and accounting fraud by the Adani Group. Following the report, Adani Group has faced several setbacks such as few global banks stopped accepting its bonds as collateral, MSCI Index reduced weightage and rating agency Moody’s downgraded the outlook of four group companies.