Adani stock crash: Group's stocks slump nearly 26% post-opening after NSE lists 3 firms under surveillance

Adani stock crash: Group's stocks slump nearly 26% post-opening after NSE lists 3 firms under surveillance

Adani Enterprises fell 10% at the open and was seen to stoop to as low as 26% post-opening

FPJ Web DeskUpdated: Saturday, February 04, 2023, 04:43 PM IST
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Adani stock crash: Group's stocks slump nearly 26% post-opening after NSE lists 3 firms under surveillance | Image: Wikipedia

Shares in the flagship company of the embattled Indian businessman Gautam Adani were repeatedly put on hold on Friday as the financial crisis brought on by accusations of accounting fraud worsened further.

From 10% to 26%

Adani Enterprises fell 10% at the open, while Adani Power, Adani Green Energy, Adani Total Gas, in which French giant Total Energies has a 37.4% stake, and Adani Transmission were also suspended when they hit their trading stops.

Adani Enterprises' stocks were seen to stoop to as low as 26% post-opening.

Trading in Adani Enterprises later resumed, only for them to immediately fall another five percent, triggering another halt.

The conglomerate's combined market capitalisation has plummeted by more than $100 billion since US short-seller Hindenburg Research -- which makes money by betting on shares falling -- released an explosive report last week.

Adani himself has seen his fortune plummet by tens of billions of dollars, dumping him out of the real-times Forbes rich list top 10 and depriving him of his title as Asia's richest person.

Adani-Hindenburg row

According to Hindenburg Research, Adani has artificially boosted the share prices of its units by funnelling money into the stocks through offshore tax havens.

This "brazen stock manipulation and accounting fraud scheme" is "the largest con in corporate history", Hindenburg said.

Adani-Dow Jones Sustainability Indices

The S&P Dow Jones stated that Adani Enterprises will be removed from the Sustainability Indices before their opening on February 7, according to a report by Mint.

Adani Enterprises' removal from the Dow Jones comes a day after National Stock Exchange put three stocks of the Adani Group-- Adani Enterprises, Adani Ports and Ambuja Cements--under the additional surveillance measure from today, February 3.

Adani's rank dropping

The fall in Adani Group's stock price has also pushed the business magnate to the 22nd spot on Forbes' list of the World's Richest Persons.

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