In yet another blow to the billionaire Gautam Adani-led Adani Group, the shares of Adani Enterprises will be removed from S&P Dow Jones Sustainability Indices. After Adani Group's stocks crashed and witnessed a massive selling spree in the Indian markets, the flagship company, Adani Enterprises have experienced this jolt from the US markets.
According to an Index announcement, the S&P Dow Jones Indices will make some changes to the Dow Jones Sustainability Indice. It reads, "Adani Enterprises (XBOM: 512599) will be removed from the Dow Jones Sustainability Indices following a Media & Stakeholder Analysis triggered by allegations of stock manipulation and accounting fraud."
The changes would come into effect prior to the open on Tuesday - February 7, 2023.
The shocking move by the S&P Dow Jones Sustainability Index comes after the infamous Hindenburg Research report rout. For those unfamiliar with the details, the research firm, Hindenburg Research released a report alleging fraud and stock manipulation by Gautam Adani and his flagship companies. While in response to the report, the Adani Group refuted all allegations and called it a 'threat to the nation,' the ripple effects caused by the report, have led to massive losses to Adani Enterprises and other companies of the Adani Group.
Even in Indian markets, the Adani Group stocks have been facing a massive selling pressure. In last trading sessions, the Adani Group stocks have largely been seen in red, despite a fully subscribed FPO, which was also later withdrawn.