Amid the broad news around Union Budget 2023, the shares of Adani Group firms extended their blood bath falling up to 30% on Wednesday. This is despite the fact that Adani Enterprises cleared the hard test of FPO by receiving a 100% subscription.
As of 15:00 IST, the flagship Adani Enterprises was down a whopping 30% for the day. As for Adani Ports & SEZ and Ambuja Cements, they had lost 25% and 19% in value respectively. The city gas distribution arm Adani Total Gas was in the red as well, down 20%. ACC, Adani Wilmar, and NDTV dropped 6.5%, 5% and 5% respectively.
The news agency Bloomberg reported that the Credit Suisse Group is no longer accepting bonds of the Adani group companies as collateral for margin loans given to private banking clients. This means that the brokerage firm with an international presence has affirmed zero value to the bonds.
Hindenburg Research, a New York-based short-selling firm had accused the Adani Group of fraud and price manipulation in its research report made public on January 24. Since then, the Adani Group companies have lost over 50% in market value.
Caught in serious allegations of fraud and price manipulation, Adani Group’s reply has been rejected by Hindenberg Research stating it is trying to hide in the name of nationalism.
The report came before the huge Rs 20,000 crore FPO of Adani Enterprises from January 27 to January 31. Though the initial response to the fundraising was tepid, with support from FIIs and corporates, the Adani FPO got fully subscribed, passing the critical test.
Written by Vikalp Mishra
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