Adani Enterprises shares hit 10% lower circuit on FPO withdrawal; Adani Total, Adani Green, Adani Power bleed. Here’s why
Shares of Adani Enterprises plunged 10 per cent in ThursdayтАЩs trade after the Adani group company decided to withdraw its successfully concluded Rs 20,000 crore follow-on public offer. Other group stocks witnessed heavy selling pressure amid a Bloomberg report suggesting that Citigroup IncтАЩs wealth arm has stopped accepting securities of Gautam AdaniтАЩs group of firms as collateral for margin loans. ┬а┬а
Adani Enterprises hit its lower circuit limit at Rs 1,915.85. Gautam Adani, Founder and Chairman of Adani group, on Thursday said Adani Enterprises’ decision to withdraw its FPO might have surprised many, but the company’s board felt that it was not morally correct to proceed with the issue, given the volatility in the market on the Budget day.
In a YouTube video, Adani, 60, said the decision would not have any impact on Adani group’s existing operations and future plans. He said his group companies will continue to focus on timely executions and delivery of projects. ┬а
Adani Transmission plunged 10 per cent to Rs 1,557.25. Adani Green dropped 10 per cent to Rs 1,038.05. Adani Total Gas slipped 10 per cent to Rs 1,711.50. Adani Ports fell 9.48 per cent to Rs 445.50. Adani Power declined 5 per cent to Rs 202.15. Adani Wilmar fell 5 per cent to Rs 421.45. ┬а
A Bloomberg report suggested CitigroupтАЩs wealth arm has stopped accepting securities of Gautam AdaniтАЩs group of firms as collateral for margin loans. The US lenderтАЩs move to restrict lending comes after a similar change at Credit Suisse Group AG, as AdaniтАЩs beleaguered empire becomes further engulfed in crisis, the Bloomberg report said.
The recent selling in Adani group stocks came after Hindenburg Research, a short selling, made many allegations on Adani group including accounting frauds, stock manipulations and money laundering, while revealing that it has gone short on Adani group stocks. While the Adani group has denied all the allegations, the group stocks continued to bleed. Just on the Budget day, Adani’s personal wealth was down by $15.74 billion, as per Forbes data.
Also read:┬аAdani Enterprises, Titan, Britannia: What should be your strategy amid the volatility
Also read:┬аGautam Adani on FPO withdrawal: Impact on existing operations, future plans unlikely; decision taken to protect investors
