Adani Enterprises, Adani Power, Adani Green and other Adani stocks fall up to 9%; here’s why
Adani Group stocks were under severe selling pressure and tumbled up to 9 per cent during the early trading session on Friday amid the report of regulatory scrutiny in the United States (US). All the 10 listed counters of Gautam Adani led conglomerate opened with big cuts on the last trading session of the week.
According to a report of Bloomberg, US authorities have been looking into representations that Adani Group made to American investors following Hindenburg Research’s scathing report. The US-based short seller had accused the Adani group of financial irregularities, accounting frauds and manipulation of stock prices by using off-shore companies.
The Bloomberg report, citing a source familiar to the matter, said that the US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to institutional investors with large holdings in the Indian conglomerate.
Shares of Adani Enterprises, the flagship company of Adani Group, topped among ther losers as it plunged about 5 per cent to Rs 2278.40, compared to its previous close at Rs 2395.90 on Thursday. The total market cap of the company slipped below Rs 2.60 lakh crore mark.
Adani Ports and Special Economic Zone cracked more than 3 per cent to Rs 721 levels, commanding a total market capitalization of little more than Rs 1.50 lakh crore. The scrip had settled at Rs 745.50 in the previous trading session.
Adani Power dropped over 4 per cent to Rs 246.25 as its market capitalization slipped below Rs 1 lakh crore market, while Adani Transmission, Adani Total Gas and Adani Green Energy dropped 3 per cent each during the early trading session. Ambuja Cement was also trading 3 per cent lower.
Among other Adani group companies, Adani Wilmar was down 2 per cent, same as ACC and New Delhi Television (NDTV).
The requests for information were focused on what Adani Group told those investors, a person told Bloomberg, who asked not to be identified because the probe was not public. The US market watchdog Securities and Exchange Commission (SEC) also has a similar probe underway, two other people told Bloomberg, according to the report.
