Adani Stocks Fall Today: Adani Group shares were under pressure, falling up to 6 per cent on the BSE in Friday’s intra-day trade following reports that the Group has drawn regulatory scrutiny in the US after a short seller’s report. All the 10 listed counters of the Gautam Adani-led conglomerate opened with big cuts in the last trading session of the week.
The ten listed Adani Group companies have lost a cumulative market capitalisation of over Rs 52,000 crore in Friday’s trading session so far. This is the biggest market capitalisation erosion for the group in over four months. The last instance was when the group had lost Rs 59,538 crore on February 9 this year.
According to a Bloomberg report, the US authorities are looking into what representations Adani Group made to its American investors following a scathing short seller’s report that accused the company of using offshore companies to secretly manipulate its share prices.
The US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the India conglomerate; Bloomberg reported quoting one person familiar with the inquiries, the report stated.
Shares of Adani Enterprises, the flagship company of Adani Group, dipped 6 per cent to Rs 2,251 on the BSE in intra-day trade. Adani Ports and Special Economic Zone, Adani Power, Adani Total Gas, Adani Transmission, Adani Green Energy, Adani Wilmar, Ambuja Cements and ACC were down 2 per cent to 4 per cent. In comparison, the S&P BSE Sensex was down 0.28 per cent at 63,061 at 10:17 AM.
Adani Ports and Special Economic Zone cracked more than 3 per cent to Rs 721 levels, commanding a total market capitalization of little more than Rs 1.50 lakh crore. The scrip had settled at Rs 745.50 in the previous trading session.
Adani Power dropped over 4 per cent to Rs 246.25 as its market capitalization slipped below Rs 1 lakh crore market, while Adani Transmission, Adani Total Gas and Adani Green Energy dropped 3 per cent each during the early trading session. Ambuja Cement was also trading 3 per cent lower.
Among other Adani group companies, Adani Wilmar was down 2 per cent, same as ACC and New Delhi Television (NDTV).
Meanwhile, the market regulator the Securities Exchange Board of India (SEBI) is conducting an investigation into allegations made by a foreign short-seller on January 25, 2023, and also into market activity before and after that date. The verdict is expected from the securities watchdog in August.
However, a panel of experts appointed by the Supreme Court also said in a report last month that there’s no regulatory failure or wrongdoing behind the wild swings of Adani stocks.
“We are fully compliant with all laws, rules, and regulations and are confident that truth will prevail. We are fully cooperating with SEBI and will continue to provide all our support and cooperation,” Adani Group said in a media statement on April 29.
It is pertinent to note that in the SEBI application filed before the Hon’ble Supreme Court, there are no conclusions of any alleged wrongdoing. The SEBI application only cites the allegations made in the short-sellers report, which are still under investigation, the Group said.
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