Adani Group's market capitalisation has more than halved a month after the US-based short seller Hindenburg Research accused the then world's third richest individual Gautam Adani of "pulling the largest con in corporate history."
Adani Group's market capitalisation of its ten listed companies has dropped 61 per cent from Rs 19.23 lakh crore to Rs 7.40 laksh crore in the massive selloff in Adani Group stocks that ensued after scathing allegations of stock manipulation and improper use of tax havens were leveled by the US-based short seller, data from Ace Equity showed.
Shares of Adani Group companies are in a downward spiral despite Group's desperate efforts to assuage investors concerns by prepaying loans and putting fresh capital expenditure plans on the back burner.
Shares in Adani Group's flagship entity Adani Enterprises, which called off its Rs 20,000 crore follow-on public offer (FPO) after getting fully subscribed from family offices and wealthy investors on last day of the issue, have crashed 59 per cent.
Adani Green Energy has dropped 72 per cent, Adani Total Gas has plunged 79 per cent, Adani Transmission has tumbled 72 per cent, Adani Power has dived 40 per cent, Adani Ports and Special Economic Zone has fallen 29 per cent and Adani Wilmar has also declined 29 per cent.
The companies which were recently acquired by Adani Group have also faced selling pressure with cement giant Ambuja Cements tumbling 33 per cent, ACC falling 25 per cent and NDTV dropping 29 per cent.
No Respite In Selling Pressure In Adani Shares
There seems to be no respite in selling pressure that has engulfed Adani Group shares as the fresh round of selloff in the company came after US-based billionaire investor George Soros said that turmoil at Gautam Adani's business empire may weaken Prime Minister Narendra Modi's hold on the government.
Soros, in a speech at the Munich Security Conference last Thursday, said Modi would "have to answer questions" from foreign investors and Parliament on allegations the Adani group is facing. His speech drew sharp reactions from the Bharatiya Janata Party.
Ruling BJP said Soros was not only targeting the Prime Minister but also the Indian democratic system. This war is being mounted against India and what stands between the war and India's interests is Modi, BJP leader and Union minister Smriti Irani told reporters.