 "Adani group companies market capitalisation erosion tops $100 billion")
The market cap erosion of Gautam Adani group stocks topped $106 billion (Rs 8.8 trillion) a day after flagship firm Adani Enterprises (AEL) pulled the plug on its fully-subscribed $2.4 billion (Rs 20,000-crore) follow-on public offering (FPO).
Stocks beginning with the Adani name lost between 5 and 27 per cent on Thursday, with AEL falling the maximum at 27 per cent and extending its six-day loss to 55 per cent. Barring AEL and Adani Ports, all these stocks hit their lower trading limit.
Newly-acquired ACC and Ambuja Cements managed to eke out gains of 0.1 per cent 5.3 per cent. Analysts said the fresh pain points for the group were cancellation of the FPO, refusal of some banks to accept Adani group securities as collateral and fears of invocation of pledged shares.
The allegations by US-based Hindenburg Research and the unprecedented drop in market value of Adani group stocks has now become a national political issue with lawmakers disrupting parliament and demanding answers from the Narendra Modi government.
Stocks beginning with the Adani name lost between 5 and 27 per cent on Thursday, with AEL falling the maximum at 27 per cent and extending its six-day loss to 55 per cent. Barring AEL and Adani Ports, all these stocks hit their lower trading limit.
Newly-acquired ACC and Ambuja Cements managed to eke out gains of 0.1 per cent 5.3 per cent. Analysts said the fresh pain points for the group were cancellation of the FPO, refusal of some banks to accept Adani group securities as collateral and fears of invocation of pledged shares.
The allegations by US-based Hindenburg Research and the unprecedented drop in market value of Adani group stocks has now become a national political issue with lawmakers disrupting parliament and demanding answers from the Narendra Modi government.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →Subscribe to Business Standard digital and get complimentary access to The New York Times
Quarterly Starter
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
Save 46%
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%