WITH JUST a day for its Rs 20,000 crore follow-on public offer (FPO) to close, Adani Enterprises Ltd, the flagship of the Adani Group, partially recovered Monday to end 4.2 per cent higher at Rs 2,878 a share, but continues to be at a 7-12 per cent discount to the FPO price band of Rs 3,112-3,276 a share.
The Adani Enterprises stock had plunged 18 per cent on Friday, and 1.18 per cent on Wednesday.
The slide in the fortune of Adani Group and its founder Gautam Adani continued Monday as shares of four of the nine listed group companies hit the lower circuit and two others fell. The Sensex, which shed 631 points intra-day, recovered to close with a gain of 169.51 points, or 0.29 per cent, at 59,500.41, and the NSE Nifty Index gained 45 points at 17,648.95.
Besides Adani Enterprises, Ambuja Cements and ACC rose 1.65 per cent and 1.1 per cent, respectively. But the group, as a whole, witnessed an additional decline in its market capitalisation of Rs 1.36 lakh crore taking the aggregate decline in market cap over the last three trading sessions to Rs 5.56 lakh crore.
In line with the decline in fortunes of the group companies at the stock exchange, Gautam Adani too witnessed further decline in his personal wealth as he slipped to 8th spot in the Forbes billionaire list on Monday. His net worth declined by USD 8.1 billion on Monday to USD 88.6 billion.
In a statement, LIC, the state-owned insurer, said it has invested Rs 36,474.78 crore in Adani Group as on date, and its exposure was 0.975 per cent of the total assets under management (AUM) at book value.
The total purchase value of equity, purchased over the last many years, under all the Adani Group companies is Rs 30,127 crore and the market value for the same as on January 27, 2023 was Rs 56,142 crore, it said in a statement. LIC did not disclose the current market value of its equity investment (post meltdown since last Wednesday).
“These investments have, however, been made over a period. The credit rating of all of the Adani debt securities held by LIC are AA and above which is in compliance with the IRDAI investment regulations as applicable to all life insurance companies,” said LIC.
Responding to the Adani Group’s 413-page response to its report on Sunday, Hindenburg Research said, “India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation.” The Adani Group had said Sunday that the Hindenburg report is an “attack on India”.
Shares of Ambuja Cement and ACC were also in the green and it is important to note that they were acquired by Adani only last year.
On the other hand, traditional Adani Group companies barring Adani Enterprises continued to remain under pressure with Adani Total Gas and Adani Green Energy falling by 20 per cent each and Adani Power and Adani Wilmar too hitting the lower circuit with a decline of 5 per cent each. Adani Transmission and Adani Ports were down 14.9 per cent and 0.3 per cent respectively at the end of Monday’s trading.
Adani’s response to the Hindenburg report had a mixed effect on the stock group and the market. “The saga is likely to continue as a hanging risk in the minds of the investors in the medium-term. To expect a scientific assessment report either by a strong independent third party or government is dim in the short-term. Now the focus of the market will be on the budget and the US Fed policy,” said Vinod Nair, Head of Research at Geojit Financial Services.
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