Shares of Adani Group companies came under renewed pressure on Monday, with the group’s market capitalisation slipping below $100 billion. On Monday, the group’s m-cap eroded by $3.1 billion (`25,000 crore) taking the total m-cap erosion to about $132 billion since the release of the Hindenburg Research report. The conglomerate has seen an overall m-cap erosion of about $193 billion from the peak seen in September last year.
Adani Total Gas has lost 76% of its value since January 24 while Adani Green Energy and Adani Transmission have shed 69% and 68% of the m-cap, respectively. All these stocks have been consistently hitting the lower circuit since the release of the report.
The stock exchanges revised the circuit limit for the stocks to 5% from 20% as the selloff worsened.
Flagship Adani Enterprises’ m-cap stood at 1.84 trillion as of Monday, less than half the value of 3.92 trillion on January 24. Shares of the company slid 9% on the bourses intraday before settling at 5.9%.
Adani Total Gas, Adani Transmission and Adani Green Energy were locked in lower circuit on Monday. New Delhi Television (-3.7%) and Adani Wilmar (-1.9%) were the other losers. Adani Power bucked the trend and was up 5%.
Chairman Gautam Adani slipped to 25th place in the Bloomberg real-time billionaires list, with a net worth of $49.1 billion as of Monday, according to reports.
Meanwhile, Bank of Baroda said on Monday it would continue to lend money to the Adani Group provided the conglomerate continues to meet the underwriting standards.
The Adani group has engaged American law firm Wachtell, Lipton, Rosen & Katz to fight back against the claims made by Hindenburg Research. It has brought in Kekst CNC, known for its work with other corporate blow-ups in recent years, as a global communications advisor, according to Bloomberg.
From March 31, Adani Wilmar will be part of Nifty Next 50 and Nifty 100 indices, while Adani Power will be included in Nifty 500, Nifty 200, Nifty Midcap 100, Nifty Midcap 150, Nifty LargeMidcap 250, and Nifty Midsmallcap 400 indices.
MSCI said last week it would postpone implementation of free float updates for Adani Total Gas and Adani Transmission to the May index review. The changes would have led to estimated passive outflows of $255 million from these scrips.
On February 8, MSCI had announced that it would update the foreign inclusion factors of specific securities associated with the Adani Group as part of its February 28 index review.