In a continuation of last week’s trend, most listed companies affiliated to the Adani Group took a beating on stock exchanges, with four of them closing lower on Monday.
Although Adani Enterprises, whose follow-on public offering (FPO) is still open to investors, started off well earlier in the day and rallied as much as 10 per cent, it soon succumbed to selling pressure. The stock touched an intraday low of Rs 2,665, but the scrip bounced back to close at Rs 2,869.85.
Adani Total Gas, Adani Transmission and Adani Green Energy fell as much as 20 per cent during the session while Adani Power and Adani Wilmar fell 5 per cent. Adani Transmission saw some buying momentum towards the end of day’s trading and closed at Rs 1707.35, marking a 15.23 per cent drop in price. The four other shares closed on their respective lower circuits.
Ambuja Cements and ACC, cement companies recently acquired by the Gautam Adani-led conglomerate, also fell below their opening prices during the day. However, they attracted buyers’ attention later in the day and closed on a positive note. ACC closed 1.50 per cent higher at Rs 1,908 and Ambuja Cements closed 1.64 per cent higher at Rs 386.70. NDTV, also a recent acquisition by Adani, fell 5 per cent to close at Rs 243.55.
The Adani Group published a 413-page response last night in response to the allegations of fraud and market manipulation laid against them by the US short-seller Hindenburg Research. In the response, the ports-to-power conglomerate termed Hindenburg’s allegations as ‘rife with conflict of interest’ and ‘a calculated attack on India’.
Before the market opened for trading this morning, Hindenburg dismissed the 413-page reply from Adani, and said "fraud cannot be obfuscated by nationalism." The US-based research firm added that India’s future is held back by the Adani Group.
