Synopsis: Adani Group stocks dropped up to 20% during Thursday's trading session. Investors in the group lost approximately Rs. 2.60 lakh crore in market capitalization at the opening tick. The plunge follows US prosecutors indicating Gautam Adani and other senior executives over a $250 million bribery case. Adani Enterprises Ltd faced the sharpest decline, hitting a 20% lower circuit. Adani Ports, Adani Green Energy, and other group companies also suffered significant losses in valuation.
The Gautam Adani-led Adani Group witnessed a sharp sell-off during Thursday's trading session as its stocks plunged by up to 20%.
This steep decline resulted in investors losing a staggering Rs. 2.60 lakh crore in market capitalization within the first few hours of trading.
The dramatic fall followed allegations from US prosecutors accusing Gautam Adani and seven other senior executives of a $250 million bribery scheme aimed at misleading US investors.
Key Developments:
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Stock Market Impact:The combined market capitalization of the 10 Adani Group companies tumbled to ₹11.91 lakh crore on Thursday, down from ₹14.24 lakh crore earlier in the week. Adani Enterprises Ltd, the flagship entity of the group, was the hardest hit, witnessing a 20% decline to ₹2,256.20 per share, erasing ₹61,096.85 crore from its market cap.
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Other Major Losers:
- Adani Ports & SEZ Ltd: Fell by 20%, losing ₹55,688 crore in valuation.
- Adani Green Energy Ltd: Dropped over 19%, wiping out ₹42,887.68 crore.
- Adani Power Ltd: Declined by 18%, shedding ₹36,000 crore.
- Adani Energy Solutions: Also hit its 20% lower circuit, losing ₹21,000 crore.
- Adani Wilmar Ltd: Registered a 10% drop, losing ₹4,289 crore.
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Acquired Entities:Ambuja Cements Ltd and ACC Ltd, recently acquired by Adani, declined by 18% and 15%, respectively. Their combined market cap loss stood at approximately ₹26,000 crore.
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International Repercussions:The US Department of Justice and the SEC have filed criminal indictments and civil complaints, respectively, against Gautam Adani and other executives. The allegations have led the group to scrap a proposed $600 million bond offering. Furthermore, Rajeev Jain-led GQG Partners, a strategic investor in six Adani Group firms, is reviewing its investments amid these developments.
Market Reaction and Outlook:
The allegations and the subsequent market crash have cast a shadow over the Adani Group's reputation and its international financial dealings. Analysts suggest that the ongoing investigations and legal proceedings may continue to affect investor confidence, both domestically and globally.
In conclusion, the Adani Group faces turbulent times as allegations of financial misconduct lead to severe market consequences. While the full legal and financial implications of the bribery case are yet to unfold, the sharp decline in stock value underscores the fragility of investor sentiment in the face of corporate controversies. Market participants are advised to approach Adani Group stocks with caution, given the current volatility and uncertainty.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
