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Adani Group Firms Stocks Slump for 7th Day Running

Adani Enterprises Tumbles 20%, firm to be dropped from Dow Jones sustainability indices.
Gautam Adani

New Delhi: Industrialist Gautam Adani addressed investors from an unknown location. He called off his flagship company's 20,000-crore follow-on share sale late Wednesday. (PTI Photo) | (Screenshot from a video via Adani Enterprises Ltd, Thursday, Feb.2, 2023)

New Delhi: Shares of Adani Group firms continued to remain weak for the seventh day running on Friday amid a host of negative events surrounding the companies.

The stock of Adani Enterprises tumbled 20% to Rs 1,173.55 -- its one-year low -- on the BSE.

Shares of Adani Ports tanked 10%, Adani Transmission (10%), Adani Green Energy (10%), Adani Power (5%), Adani Total Gas (5%), Adani Wilmar (4.99%), NDTV (4.98%), ACC (4.24%) and Ambuja Cements (3%).

Many of the group firms hit their lower circuit limits during the morning trade.

Adani Group stocks have taken a beating on the bourses after US-based Hindenburg Research made a litany of allegations in a report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.

Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

"The Board of Adani Enterprises Ltd., (AEL) decided not to go ahead with the fully subscribed FPO. Given the unprecedented situation and the current market volatility, the company aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction," the company said in a statement on Wednesday.

Adani Enterprises, the flagship company of Adani Group, had a lacklustre start to its FPO, with only 1% subscription on the first day of the share sale. The offer was opened for public subscription from January 27-31.

Adani Enterprises to be dropped from Dow Jones sustainability indices

S&P Dow Jones has said it will remove Adani Group's flagship firm Adani Enterprises from sustainability indices with effect from February 7, following a media and stakeholder analysis triggered by allegations of accounting fraud.

The move comes amid leading stock exchanges BSE and NSE putting three Adani Group companies -- Adani Enterprises, Adani Ports and Special Economic Zone and Ambuja Cements -- under their short-term additional surveillance measure (ASM) framework.

"Adani Enterprises will be removed from the Dow Jones sustainability indices following a media and stakeholder analysis triggered by allegations of accounting fraud," S&P Dow Jones Indices said in a statement.

It will make the changes to the Dow Jones sustainability indices, effective prior to the opening on February 7.

The 10 listed Adani Group firms have faced a combined erosion of over Rs 8.76 lakh crore in past six trading sessions.

On Wednesday, Adani Enterprises said it will not go ahead with its Rs 20,000-crore Follow-on Public Offer (FPO) and will return the proceeds to investors.

Moody's Assessing Financial Flexibility of Adani Group 

Moody's Investors Service on Friday said it is assessing overall financial flexibility, including liquidity position, of Adani Group firms given a significant and rapid decline in stock value post release of the Hindenburg Research report.

"These adverse developments are likely to reduce the group's ability to raise capital to fund committed capex or refinance maturing debt over the next 1-2 years," Moody's said.

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