Adani Group firms suffer massive Rs 2.19 lakh crore drop in market value
Shares of Adani Wilmar declined 9.98 per cent, Adani Power slumped 9.15 per cent, ACC fell 7.29 per cent, and NDTV dipped 0.06 per cent
By Newsmeter Network Published on 21 Nov 2024 12:30 PM GMT
Adani Green Energy dropped 10.95 per cent and Adani Energy Solutions tumbled 8.57 per cent to hit the 52-week low of Rs 637.85 on the BSE
New Delhi: The combined market valuation of all ten listed Adani group firms fell sharply by Rs 2.19 lakh crore on Thursday, more than double of what the conglomerate had lost when the US short seller Hindenburg brought out a damning report in January 2023.
Shares of Adani group firms fell sharply as billionaire Gautam Adani was charged by US prosecutors for allegedly being part of a scheme to pay USD 265 million (about Rs 2,200 crore) bribe to Indian officials in exchange for favourable terms for solar power contracts.
The stock of the group's flagship firm, Adani Enterprises, plunged 22.61 per cent, Adani Energy Solutions tanked 20 per cent, Adani Green Energy plummeted 18.80 per cent, Adani Ports dived 13.53 per cent, Ambuja Cements cracked 11.98 per cent, and Adani Total Gas tumbled 10.40 per cent on the BSE.
Shares of Adani Wilmar declined 9.98 per cent, Adani Power slumped 9.15 per cent, ACC fell 7.29 per cent, and NDTV dipped 0.06 per cent.
Some of the group firms also hit their lowest trading permissible limit for the day during the day.
The combined market capitalisation (mcap) of all ten listed group firms eroded by Rs 2,19,878.35 crore.
In the equity market, the BSE benchmark Sensex tanked 422.59 points or 0.54 per cent to 77,155.79, and the NSE Nifty declined 168.60 points or 0.72 per cent to 23,349.90.
"While the market is in the midst of a bear hug for the past few weeks, today's fall can also be attributed to the news of Adani group facing bribery charges, which triggered a massive sell-off in its group stocks," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Adani, India's second-richest man, and seven others, including his nephew Sagar, have been charged with paying bribes to unidentified officials of state governments in Andhra Pradesh and Odisha to buy expensive solar power, potentially earning more than USD 2 billion profit over 20 years.
Adani group on Thursday denied charges of paying bribes to secure favourable terms for solar power contracts, saying the allegations by US prosecutors are baseless and the conglomerate is compliant with all laws.
It said all possible legal recourse will be sought.
"The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the group spokesperson said in a statement.
Inputs from PTI
