Adani Enterprise shares erode 60% in the last month

Adani Enterprise shares saw their first fall on Friday as they went down 35 per cent in the morning trade. A day after it was placed under the NSE's additional surveillance measure framework, the stock in the morning session fell to its worst-ever intraday performance, with the stocks trading at Rs 1,017.45 at 10:41 am on the NSE. The stock had tanked by more than 75 per cent in value from its peak of Rs 4,190 in December 2022.

The shares of the Adani Group have lost almost $120 billion in market cap since the Hindenburg report was released on January 24. This is nearly half of the group's combined market value.

The Adani Enterprise shares have gone down by close to 50 per cent in the last five sessions and by 60 per cent in the last month. On January 4, the shares were at Rs 3,827.05 whereas on February 4, they closed at Rs 1,531.

Adani vs Hindenburg

On January 24, the short seller Hindenburg Research released a report accusing the Adani Group of stock manipulation, which the company declined, stating that the accusations are for selfish reasons and will harm the investors.

The back and forth between both companies continued, but it pulled the market down, with Sensex dropping over 1,000 points and the Nifty going below 17,600 on January 27, 2023.

Adani FOP cancelled

Despite these volatile market conditions the Follow-on-public offering of Rs 20,000 of the Adani Enterprise was subscribed 112 per cent which was led by non-institutional investors and qualified institutional buyers. But the board of directors on February 1, said that it wouldn't be morally correct to go ahead with the issue and in order to safeguard the investors from potential losses the company did not go ahead with the FPO.

But, the shares of the company continued to be in a slump and NSE had to put it under additional surveillance measure (ASM) framework. Additionally S&P Dow Jones announced that Adani Enterprise will be removed from S&P Jones Sustainability Indices from February 6.

The shares of the other companies of Adani did not fare well either as most of them ended in red.