Adani Group stocks started the week under heavy selling pressure with flagship Adani Enterprises Limited (AEL) losing 7 per cent to end at ₹1717.65 with volumes of over 12 million shares changing hands on Monday. Among the ten Adani portfolio companies, six hit the lower circuit. Adani Transmission Limited (ATL), Adani Power Limited (APL), Adani Green Energy Limited (AGEL), Adani Wilmar (AWL) and Adani Total Gas Limited (ATGL) were locked at 5 per cent lower circuit.
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Notably, last week Adani Group’s key investor, Paris-based TotalEnergies had put on hold its planned investment of $ 4 billion in Adani Group’s hydrogen projects amidst the allegations by the US short-seller Hindenburg Research. TotalEnergies has investments in four Adani Group entities with total exposure at $3.1 billion. Adani’s ports arm Adani Ports and Special Economic Zone Ltd (APSEZ) lost 5.18 per cent at ₹553.70. Cements makers Ambuja Cements and ACC lost 5 per cent and 3 per cent, respectively, to close at ₹342.45 and ₹1,823.15, on the NSE. The media entity under Adani portfolio, NDTV, also hit the lower circuit of 5 per cent to close at ₹198 .10.
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Though the Adani Group has denied allegations made by the US-based short-seller Hindenburg Research, the scathing allegations had impacted the group’s market perception and the stock valuations since January 25. Following this, a mega follow-on public offer (FPO) of ₹20,000 crore from the flagship AEL had to be withdrawn. This is believed to impact the group’s growth and capex plans, thereby triggering a fresh panic sell-off in the stock.