Adani Group stocks continued their downward trend in Tuesday’s trade, in line with overall weakness in the domestic equity benchmarks. The stocks started tumbling after a report by US-based short seller Hindenburg Research alleged that the Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless.
In an interview with Business Today, the group accused Hindenburg of not doing proper research and “copy-pasting” from the company disclosures.
Adani Group said that timing of the Hindenburg report’s publication clearly showed the short seller’s intention to damage “the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.”
On the stock-specific front, four out of 10 Adani stocks slipped to their lower price bands and two hir their one-year low levels. (10 listed Adani stocks include recently acquired ACC, Ambuja Cements and NDTV.)
Adani Power, Adani Total Gas, Adani Wilmar and NDTV touched their respective lower circuit levels today; while Adani Green Energy and Adani Transmission hit their 52-week lows.
Shares of Adani Power fell 5 per cent in early trade to hit a day low of Rs 223.90 over a previous close of Rs 235.65. The counter extended its fall for the fourth straight session. The stock has lost 18.52 per cent in four sessions.
Adani Total Gas slumped 10 per cent to touch a day low of Rs 2,112.90. The stock has lost 46.08 per cent in six straight days.
Adani Wilmar plunged 5 per cent to hit its lower price band of Rs 466.90. The counter has declined 18.54 per cent in four days. NDTV shares also fell in the same tune (5 per cent) to hit their lower circuit level of Rs 231.40. NDTV has slipped 18.59 per cent in five sessions.
Shares of Adani Green tanked 9.61 per cent today to hit their 52-week low level of Rs 1,073.60. The stock traded slightly above its lower circuit (10 per cent) of Rs 1,068.95.
Adani Transmission dived 8.63 per cent to touch its one-year low of Rs 1,562.55. However, the stock turned positive in late-morning deals.
Further, Adani Enterprises’ Rs 20,000-crore follow-on public offer (FPO) received bids for 27,89,884 shares on the third day of bidding (Day 3) so far. The issue was subscribed 6 per cent of the total size of 4,55,06,791 shares, as of 10:24 am today.
The issue has received a tepid response so far amid a sharp fall in shares of Adani Group. However, Adani Enterprises stock climbed, but it is still trading below the FPO price band of Rs 3,112-3,276 per share.
“The Adani crisis which had impacted market sentiments will be pushed to the back burner if the FPO sails through via institutional investment,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
In addition, Adani Ports, Ambuja Cements and ACC also advanced today.
Meanwhile, Indian equity benchmarks extended their fall in today’s trade, dragged by financial and technology stocks.
Also read: Ambuja Cements, Sun Pharma, Bajaj Finserv: What should be your strategy ahead of Q3 results
Also read: Adani Total Gas hits lower circuit again, stock tanks 47% in 7 sessions
