Adani Group stocks see worst day since Hindenburg crisis, lose Rs 2 lakh crore

Adani Group market cap falls: The bribery allegations caused panic selling across Adani Group stocks, marking their worst trading day since the Hindenburg Research report in early 2023.

In Short

• Adani Group stocks tank after US bribery charges
• Investors lost over Rs 2 lakh crore in market value
• US dollar bonds of Adani Group saw sharp declines in Asia

Shares of Adani Group saw a massive fall on Thursday, with several stocks hitting their daily lower circuit limits. This comes after US prosecutors filed bribery charges against Gautam Adani and seven other senior executives. Investors in Adani Group’s 10 listed companies lost over Rs 2.60 lakh crore in market value during early trade.

WORST MARKET DAY SINCE HINDENBURG REPORT

The allegations caused panic selling across Adani Group stocks, marking their worst trading day since the Hindenburg Research report in early 2023. The Adani group had lost a market cap of nearly Rs 1 lakh crore in January 2023, after the Hindenburg report came out.

The combined market capitalisation of the group’s 10 companies fell to Rs 11,91,557.79 crore on Thursday, from Rs 14,24,432.35 crore on Tuesday, resulting in a sharp loss of Rs 2.60 lakh crore.

TOP LOSERS IN ADANI GROUP STOCKS

Adani Enterprises Ltd
The flagship company was the hardest hit, with shares tanking 20% to Rs 2,256.2 from their Tuesday close of Rs 2,820.2. This caused a market capitalisation loss of Rs 61,096.85 crore, bringing the company’s total valuation to Rs 2,60,406.26 crore.

Adani Ports and Special Economic Zone Ltd
Another significant contributor to the loss, the stock dropped 20% to Rs 1,031.25, erasing Rs 55,688 crore in value.

Adani Green Energy Ltd
Shares of Adani Green Energy fell over 19%, wiping out Rs 42,887.68 crore in market capitalisation.

Adani Power Ltd
The stock declined by 18%, leading to a valuation loss of Rs 36,000 crore.

Adani Energy Solutions (formerly Adani Transmission)
Shares were locked at their 20% lower circuit limit, erasing Rs 21,000 crore from its valuation.

Adani Wilmar Ltd
The company fell 10%, losing Rs 4,289 crore in market capitalisation.

Ambuja Cements and ACC Ltd
Among the acquired entities, Ambuja Cements saw an 18% decline, resulting in a Rs 20,296 crore loss, while ACC Ltd lost 15% in value, translating to Rs 5,700 crore.

NDTV
The smallest Adani Group entity, NDTV, dropped over 14%, with its valuation shrinking by Rs 157 crore.

The bribery allegations also led to the cancellation of a $600 million dollar bond offering by Adani Group companies. This decision came just hours after the bonds were priced. Meanwhile, Adani Group’s existing US dollar bonds saw sharp declines in Asian trading, with some falling by as much as 15%.

Adani Green Energy also released a statement acknowledging the developments and confirming the same.

"The United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani. The United States Department of Justice have also included our Board member, Vneet Jaain, in such a criminal indictment. In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings," said the statement.