Adani Group stocks in freefall, wipe out Rs 4.1 lakh crore of investor wealth
Adani group stocks news: Adani Group shares continued to bleed for a second straight trading session on Friday.
Adani Group Stocks News: Adani group shares continued to fall for a second straight session on Friday, wiping out Rs 4,17,824.8 crore of investors' wealth as the market capitalisation of the seven listed companies dropped. All of the seven stocks – Adani Enterprises, Adani Ports, Adani Transmission, Adani Green Energy, Adani Total Gas, Adani Power and Adani Wilmar – of the conglomerate led by billionaire Gautam Adani finished the day deep in the red, losing 5-20 per cent of their value compared with the previous close.
The steep losses in Adani group stocks came about after New York-based Hindenburg Research alleged that the the conglomerate engaged in "brazen stock manipulation and accounting fraud scheme over the course of decades", charges denied by the Adani group.
The Adani group termed the report “malicious combination of selective misinformation and stale".
"The maliciously mischievous, unresearched report published by Hindenburg Research on January 24, 2023, has adversely affected the Adani Group, our shareholders and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens," Adani Group legal head Jatin Jalundhwala said.
Here's a look at the magnitude of the fall in the stocks at intraday lows on Friday:
Sensex, Nifty sink as Adani Group stocks weigh on SBI, ICICI Bank, Axis Bank, HDFC Bank shares
The report came ahead of a follow-on public offer (FPO) worth Rs 20,000 crore of Adani Group's flagship, Adani Enterprises. The FPO, which opened on January 27, will close on January 31.
Investors have been concerned about elevated valuations of Adani group stocks.
The recent slide in Adani Group stocks has weighed on the banking and financial shares on Dalal Street.
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