New Delhi, January 30
The share prices of most of the Adani Group’s firms, barring those of the flagship Adani Enterprises, continued to fall on Monday despite several measures to bolster investor confidence, including a 413-page response to the allegations of wrongdoing by US-based short-seller Hindenburg Research and an announcement by Gulf-based International Holding Company that it would invest $400 million in Adani Enterprises’ FPO (follow-on public offer). For the third straight trading session, the share prices of most of the group firms declined, with Adani Total Gas tumbling 20 per cent, Adani Green Energy 19.99 per cent, Adani Transmission 14.91 per cent and Adani Power and Adani Wilmar 5 per cent each. However, the stock of Adani Enterprises climbed 4.21 per cent. All its listed companies lost nearly Rs 5.56 lakh crore (over $70 billion) since the January 24 Hindenburg report that red-flagged high debt levels and alleged the use of offshore entities to artificially pump up the group’s share prices. Despite the hammering of its shares, the group was confident that its Rs 20,000 crore FPO won’t be affected. Its 413-page counter said the report was “a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India”.
Group’s Chief Financial Officer Jugeshinder Singh compared the behaviour of Indian investors off-loading shares following the report to the Jallianwala Bagh massacre. “In Jallianwala Bagh, one Englishman gave the order and Indians fired on other Indians. So, am I surprised by the behaviour of some fellow Indians? No,” he said in an interview.
Hindenburg reiterated its allegation of “fraud” and disagreed with the Adani Group linking the adverse report as an attack on India. “To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future, but India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation,” it alleged.
Meanwhile, the LIC said its exposure of Rs 36,474.78 crore in the group was less than 1 per cent of its total investments of Rs 41.66 lakh crore.
Punjab National Bank CEO Atul Kumar Goel said the bank’s exposure of about Rs 7,000 crore was mostly in Adani’s airport business which was generating cash. “We are keeping our eyes on the issue,” he said during an online interaction.
Rs 5.56L cr total loss in 3 sessions
Change in Adani firms’ stock prices: Adani Total Gas (-20%) | Adani Green Energy (-19.99%) | Adani Transmission (-14.91%) | Adani Power & Adani Wilmar (-5% each) | Adani Enterprises (+4.21%) Total market cap loss: Rs 5.56 lakh crore
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