New Delhi: The Adani Group of companies saw a combined market capitalisation erosion of nearly Rs 35,000 crore between Thursday and Friday, as concerns over a US bribery indictment continued to weigh on investor sentiment for the second consecutive day.
The group’s total market value fell from Rs 12.4 lakh crore on Thursday to Rs 12.05 lakh crore Friday. This follows a Rs 2.6 lakh crore drop in its market cap on Thursday.
While some Adani stocks showed signs of recovery in early trade, most of them closed negative at the end of the day.
The shares of Adani Enterprises, the flagship company, opened at Rs 2,101–80 points lower than its previous close. It dipped to an intraday low of Rs 2,025, but recovered to close at Rs 2,229, gaining 2.12 percent. Its market capital also saw a marginal increase of Rs 20,000 crore Friday, settling at Rs 2.57 lakh crore.
Adani Green Energy, which is named in the indictment, had a weak opening at Rs 1,085 apiece, 60 points lower than its previous close of Rs 1,145. It recovered by around 9 percent, peaking at Rs 1,200 around noon. However, the recovery was short-lived as the stock closed at Rs 1,054, down 91 points or 7.96 percent. Adani Green’s market capital further slipped by Rs 16,000 crore from Thursday to settle at Rs 1.67 lakh crore.
Though the conglomerate’s logistics arm, Adani Ports, saw an uptick in share prices, its market capital remained stagnant at Rs 2,46 lakh crore Friday. It opened low at Rs 1,072 apiece but recovered by 2.09 percent to close at Rs 1,138.
The shares of Adani Power, on the other hand, closed negative at Rs 461, despite showing signs of recovery during the day. It also lost another Rs 64,000 crore in market capital, downsizing the company’s value to Rs 1.78 lakh crore.
Sticking to the loss-making line, group stocks like Adani Energy Solutions and Adani Wilmar saw a market capital decline of Rs 6,000 crore and Rs 1,000 crore respectively. Adani Energy Solutions traded in red throughout the day to close at Rs 648 apiece, recording a 6.94 percent fall. Adani Wilmar too was down by 0.64 percent and closed at Rs 293.
Other Adani stocks like ACC, Ambuja Cement, Adani Total Gas and its recent media acquisition NDTV, however, closed in green, showing some resistance to the volatility.
ACC recovered 3.3 percent Thursday to close at Rs 2,094. However, its market capital fell by Rs 300 crore. Ambuja Cement, similarly, recovered by 3.81 percent to close at Rs 502, while also recording an increase of Rs 11,000 crore in market capital. Adani Total Gas recovered by 1.51 percent, at Rs 611. It reached intraday peak trading at Rs 619.
Media company NDTV showed slight recovery of 0.81 percent, trading at Rs 169 as markets closed. Its market capital fell by Rs 10 crore to reach Rs 1,090 crore Friday.
The US Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have accused Gautam Adani, his nephew Sagar and six others of bribing Indian government officials over Rs 2,000 crore to secure energy contracts in India. The allegations also include inflating project costs and misleading investors, creating significant headwinds for the group.
Following the allegations and arrest warrants against Gautam and Sagar Adani in the US, Kenya cancelled its airport and power transmission deals worth $2.3 billion with the Adani Group. The Adani Group has denied all allegations, terming them “baseless”.
(Edited by Tikli Basu)