Adani Group’s market capitalisation (m-cap) has slipped below the $100 billion mark as a selloff intensified on Tuesday in a majority of the conglomerate’s listed counters. Since January 24 this year, Adani stocks took a major hit after US-based short seller Hindenburg Research alleged that the Gautam Adani-led Indian conglomerate had engaged in stock manipulation and accounting fraud scheme over the last few decades. Adani Group, however, refuted the claim as baseless. At today’s closing, the scathing allegation has resulted in an erosion of $134 billion from Adani Group’s market value.
The $134 billion stock rout in Adani Group shares equals 4.22 per cent of India’s annual GDP, which is estimated at $3.17 trillion. The value erosion in Adani group shares also equals the annual GDP of Angola. 10 of Adani Group stocks commanded a combined m-cap of Rs 8,09,182 crore today, which at the rupee-dollar exchange rate of 82.76 were valued at $98 billion.
This was down Rs 11,10,706 crore ($134 billion) from Rs 19,19,888 crore value, the group commanded as on January 24 this year.
At Adani Enterprises’ recent earnings announcement, the Adani group said it has assessed that no material financial adjustment arises to the consolidated financial results for the quarter and nine months ended December 31, 2022, with respect to the said allegations.
While announcing Adani Enterprises Q3 results, Gautam Adani termed the market volatility as temporary and said that the flagship firm would continue to leverage while looking at strategic opportunities to expand and grow.
In value terms, Adani Total Gas has lost the most. The stock eroded Rs 3.30 lakh crore in market value. Adani Total Gas’s m-cap came at Rs 96,656.81 crore today against Rs 4.27 lakh crore as on January 24.
Three of the group’s stocks namely, Adani Transmission, Adani Enterprises and Adani Green Energy have eroded over Rs 2 lakh crore, each, in terms of market value. Adani Power and Adani Ports & SEZ have also seen value erosion of up to Rs 39,977 crore.
Also, Adani Total Gas, Adani Transmission and Adani Green tanked 5 per cent today, each, to hit their respective one-year low levels. Adani Wilmar shares slipped 4.33 per cent; while Adani Enterprises settled 3.16 per cent lower.
Meanwhile, the 30-share BSE Sensex pack edged 19 points, or 0.03 per cent, down to settle at 60,673. The broader NSE Nifty index fell 18 points, or 0.10 per cent, to close at 17,827. Mid and smallcap shares finished on a weak note, with the Nifty Midcap 100 and Nifty Smallcap 100 shedding 0.36 per cent, respectively.
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