Adani Group stocks tank up to again amid ruckus in Parliament

Adani Group stocks were back under the spotlight during the early trade on Tuesday amid the ruckus over the Adani-Hindenburg saga in Parliament as the second leg of the budget session kicked-off on Monday.

Congress MP Manickam Tagore has moved an adjournment motion in the Lok Sabha seeking a discussion on the Adani Group versus Hindenburg Research saga. He expressed concerns regarding the exposure of the public insurer Life Insurance Corporation of India (LIC) to the Adani Group.

The Finance Ministry, told Lok Sabha, on Monday, that volatility in stocks of Adani Group had no ‘significant’ impact at the systemic level. It also said SEBI was investigating the allegations of market manipulation against these companies.

On Dalal Street, all Adani Group stocks were rocked again. Adani Enterprises, the flagship company of the Gautam Adani led conglomerate plunged more than 7 per cent to Rs 1736.40. The stock has plunged more than 15 per cent in the last one week.

Adani Power Ltd, Adani Total Gas, Adani Transmission, Adani Green Energy and NDTV hit a lower circuit of 5 per cent each, while Adani Wilmar was merely shy of hitting the seller’s circuit. Adani Ports and Special Economic Zone decline about 4 per cent to Rs 656.30 on Tuesday. Ambuja Cements Ltd and ACC were also down 3 per cent each for the day.

A Morning Context report claimed that Adani Group chairman Gautam Adani’s elder brother Vinod Adani owns the two cement companies it bought last year Ambuja Cements and ACC. It further said that the Adani Group does not own the two cement companies.

On Monday, Adani group said it has completed the entire prepayment of margin-linked share-backed financing, amounting to $2.15 billion, ahead of the committed timeline of March 31, 2023. Since the Hindenburg Research report came out on January 24, the Adani group has been focused on cutting debt in a bid to ease investor concerns.

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