Adani Group stocks plunged sharply during the early trading session on Wednesday following the negative new flow and short position by global funds. Short-seller Hindenburg Research said that it holds short positions in India’s Adani Group Companies through US traded bonds and non-Indian-traded derivative instruments.
Adani Group stocks were rocked as Hindenburg Research’s positions flagged risks to the financials of key companies. Key listed Adani companies have also taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing, Hindenburg said.
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The bluechip counters of Gautam Adani-led conglomerate led the losers ahead of the expiry of F&O contracts for the January series.
Adani Ports plunged about 5 per cent to Rs 725 on Wednesday, before making a mild recovery to 731.05 as of 9.55 am. The scrip had settled at Rs 760.85 on Tuesday. The port and port services provider are trading 27 per cent below its 52-week high of Rs 987.90, hit on September 20, 2022.
Adani Enterprises plunged 3 per cent to Rs 3357.10 during the session, ahead of its Rs 20,000 crore follow-on public offering (FPO), opening on January 27, 2022. Adani Group’s flagship firm will sell shares in the range of Rs 3,112-3,276 with a lot size of 4 shares. Its anchor books open today.
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Ambuja Cements plunged over 4 per cent to Rs 477.50, whereas ACC tumbled 3 per cent to 2264.55 during the trading session. Overall demand is expected to be healthy with Lok Sabha elections on the horizon as the Government would start doling out infrastructure projects, said Nirmal Bang Institutional Equities.
“With ACC and Ambuja Cements’ well-established brand value and experienced management at the helm of these companies, the Adani group will reap the benefits and will scale the business to new heights. Given the diversified nature of the Adani group, synergies are expected to materialize in the form of cost efficiencies aiding the profitability” it said.
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Among other Adani Group stocks, Adani Wilmar lost 4 per cent to Rs 551.35, whereas Adani Power also posted similar cuts to trade at Rs 264 on Wednesday. Gautam Adani’s latest acquistion, New Delhi Television (NDTV), also slipped 4 per cent.
Adani Transmission and Adani Total Gas were down 3 per cent during the Wednesday’s session. However, Adani Green Energy, the latest company of the group in terms of marketcap, shed 2 per cent.
