Mon 27 March 2023:
All the seven Adani Group stocks ended in the red on Monday, March 27 – for the first time in more than a month, i.e. since February 22, 2023. This has led to a loss of Rs 30,000 crore worth of market capitalisation, CNBCTV18 reported.
The total market capitalisation currently stands at around Rs 9.4 lakh crore, the report added.
According to the report, the Adani Group had a record high market capitalisation of Rs 24 lakh crore in October last year.
Adani Enterprises fell 0.99% to close at Rs 1723.30 on the BSE on Monday.
Adani Ports and SEZ was down by 1.43% to end at Rs 629.10; Adani Power down by 4.98% to close at Rs 183; Adani Transmission 4.98% to close at Rs 1,069.20; Adani Green Energy 4.40% to end at Rs 984.70.
Adani Total Gas was down by 4.91% to close at Rs 958.35 while Adani Wilmar fell by 4.93% to end at Rs 387.65 on the BSE.
Shares in Adani group companies slumped following Hindenburg Research’s January 24 report alleging fraud and market manipulation. The group, controlled by Gautam Adani, has denied the allegations. The selloff wiped more than $100 billion off the conglomerate’s market value.
Meanwhile, in recent developments, the Adani Group has decided to halt some of its proposed investments, especially those without funding commitments, Mint reported, citing people aware of the matter. It has also cut its growth target and capital expenditure.
But the group has been prepaying some loans in the form of share-backed pledges, commercial papers, etc.
The company prepaid loans worth $1.11 billion (approximately Rs 9,200 crore) on February 6, thus releasing pledged shares ahead of their maturity of September 2024.
It also repaid a part of its commercial papers from some domestic mutual funds ahead of their maturity, the Morning Context reported. However, buying back CPs doesn’t make much sense, and by doing this, the company only wants to convey that all is well, an executive at a fund house with exposure to Adani Group’s CPs told the news outlet.
Bloomberg reported in early March that Adani’s Mundra power plant has more liabilities than assets and has run up $1.8 billion ( around Rs 14,500 crore) of losses. However, the Financial Express on March 27 reported that Adani Enterprises is in the advanced stages of of achieving financial closure of Rs 14,500 crore required to partly fund the plant.
Separately, the demand for a joint parliamentary committee (JPC) probe in the Adani case by opposition parties continues to affect the proceedings of parliament. “We are raising the demand for a JPC on the Adani issue. But the Government of India is not ready to accept the simple JPC demand,” Congress president Mallikarjun said at a protest, adding that a JPC would have more members from the ruling party than the opposition parties and they should have no objection to it.
=The Wire
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