Thursday, February 16, 2023

Adani mcap declines despite gains in 6 group stocks

Adani mcap slides even as 6 group stocks gain

 MUMBAI: Adani Enterprises, Adani Green Energy, Adani Transmission, Adani Power, and Adani Total Gas all closed with gains on another day of mixed trade, while Adani Green Energy, Adani Transmission, Adani Power, and Adani Total Gas all closed at the 5% lower circuit. However, according to TOI-compiled BSE data, the group's market capitalization decreased by nearly Rs 13,700 crore overall.

Following the company's Tuesday announcement of strong quarterly results, Adani Enterprises experienced its second session of gains in a row. The stock gained 2% the day before and closed up 1.6% on Wednesday.

Ambuja Cements was up 2.4%, ACC was up 1.1%, NDTV was up 4.7 percent, Adani Ports was up 0.7 percent, and Adani Wilmar was up nearly 1% at the end of the session.

Since January 25, when US-based short-seller Hindenburg Research accused the ports-to-infrastructure conglomerate of fraud, stock price manipulation, and corporate malfeasance, Adani Group's shares have mostly been going down. The group has denied all of the allegations and is thinking about taking legal action against the US-based company.

The combined market value of the group's ten businesses as of Wednesday's close was Rs 8.7 lakh crore, down 55%, or Rs 10.5 lakh crore, from Rs 19.2 lakh crore prior to the Hindenburg report's publication. Of the ten businesses, Adani Total Gas's market cap has dropped the most, by 72%, to Rs 1.2 lakh crore, from approximately Rs 4.3 lakh crore on January 24. Adani Transmission has lost 63% of its market capitalization to Rs 1.1 lakh crore, while Adani Green Energy has lost two-thirds of its market capitalization to Rs 98,329 crore. Adani Power and Adani Enterprises now have a market value that is nearly half of what it was on January 24. Since the Hindenburg report was published, other companies have lost between 20% and 39% of their market value.

The market would react on Thursday to the announcement that Adani Power had abandoned its plan to acquire DB Power for Rs 7,000 crore.

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