The combined investment value of retail investors and high networth individuals in the Adani group of companies plunged by over Rs 12,500 crore from January 24, 2023, to January 30, 2023. Shares of the group witnessed a heavy selloff after a report by the US short-seller Hindenburg Research last week claiming that the Indian giant had engaged in stock manipulation and accounting fraud scheme over the course of the last few decades.
The total investment value of individual investors in the 10-listed Adani group of firms declined to Rs 41,499 crore on January 30, 2023, from Rs 54,066 crore on January 24, 2023. Shares of Adani Total Gas tanked the most 39.58 per cent to Rs 2,347.65 from Rs 3,885.45 during the same period.
It was followed by Adani Transmission (down 38 per cent), Adani Green Energy (down 38 per cent), Ambuja Cements (down 22 per cent), Adani Ports (down 21.55 per cent), ACC (down 18.47 per cent), Adani Enterprises (down 16.39 per cent), Adani Wilmar (down 14.25 per cent), Adani Power (down 14.25 per cent) and NDTV (down 14.23 per cent).
While sharing his advice with investors, Kolkata-based investor Abhishek Basumallick, Chief Equity Advisor, Intelsense told Business Today TV that it is very difficult to figure out what is going on. “If you are a long-term investor and looking to invest in Adani group stocks at present, I would suggest you avoid them right now and wait for the dust to settle down. We don’t have any position in Adani stocks.”
Meanwhile, a follow-on public offer of Rs 20,000 crore by Adani Enterprises got subscribed 29 per cent on the last day of the subscription till 12.33 pm (IST).
The portion reserved for retail individual investors got subscribed to 7 per cent so far, while the portion reserved for qualified institutional investors got subscribed to 49 per cent at around the same time.
Jugeshinder Singh, Group CFO, Adani in a media statement last week said that the report is a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.
He further added that the timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s reputation with the principal objective of damaging the upcoming follow-on public offering from Adani Enterprises, the biggest FPO ever in India.
Also read: Adani Enterprises shares rally 9% but Adani Total Gas, Adani Transmission, Adani Green tumble up to 20%
Also read: Hindenburg effect: This Adani company generated 1 million+ Google searches in a day