Adani Group’s mcap nearly halves, drops below ₹10 lakh crore – Times of India

MUMBAI: The combined market value of Adani Group companies fell below the Rs 10-lakh-crore mark on Monday even as some stocks stabilised. The market capitalisation of the Gautam Adani-led group has nearly halved from Rs 19. 9 lakh crore recorded on January 24, when US-based short-seller Hindenburg Research released a scathing report.
According to market players, a release by the group that its promoters were paying back about Rs 9,230 crore to lenders ahead of time to release some stakes they had pledged to raise funds had a positive impact on the stock prices.
Allegations in Hindenburg’s report ranged fromfraud and stock price manipulation to corporate malfeasance. Since January 25, stock prices of all 10 Adani Group companies went into a free fall. Adani Total Gas is down 60% since January 24 — the biggest loss in the group. The market value of three other companies — Adani Enterprises, Adani Transmission and Adani Green Energy — has halved since January 24. The remaining six companies havelost between 34% and 15% of their market value since the Hindenburg Research report, BSE data showed.
The slide in the stock prices continued despite the group vehemently denying all of Hindenburg Research’s allegations. Assurances from the finance ministry including the FM, the RBI and Sebi about the robustness of the Indian market and the economy also failed to arrest the slide inAdani Group stocks.
One of the major fallouts of the slide was that the group had to withdraw its Rs 20,000-crore mega followon public offering (FPO) for flagship Adani Enterprises aday after it managed to close successfully on January 31. Last week, European banking major Credit Suisse and an arm of the US financial major Citigroup valued stocks from the group to zero and declined to accept those as collateral.
On Monday, Adani Enterprises closed a marginal 0. 7% lower, while ACC, Ambuja Cements and NDTV each closed with up to 2% gains. At the same time, Adani Transmission closed at the 10% lower circuit, Adani Power, Adani Total Gas and Adani Wilmar each closed at the 5% lower circuit. The day’s loss of market value of the group’s companies was Rs 27,000 crore.

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