Adani Group stocks lose over 55,000 cr in market value

Shares of seven Adani group stocks lost 55,000 crore in market cap in Wednesday's session after a report by short seller Hindenburg said seven of the Adani group listed companies have an 85 per cent downside potential on a fundamental basis due to sky-high valuations.

Adani Total Gas, Adani Enterprises, Adani Transmission, Adani Green Energy, Adani Ports, Adani Power and Adani Wilmar all lost Rs 54,542 crore in market value after the report. Their combined m-cap was at 17.20 lakh crore compared to 17.75 lakh crore a day ago.

Adani Ports lost 5.35 per cent to Rs 720 a piece, Adani Ports and Adani Wilmar lost 4 per cent each. Adani Total Gas and Adani Transmission fell 3 per cent each. Adani Enterprises declined 2.5 per cent, while Adani Green Energy was down 1.5 per cent. Adani Total Gas lost Rs 13,800 crore in market value, followed by Adani Transmission down Rs 10,167 crore Adani Enterprises' losses of Rs 8,791 crore. As per the report from Hindenburg Research on Wednesday, Adani group companies hold short positions through and non-Indian- traded derivative instruments and US-traded bonds. According to the Hindenburg Research note, the key listed Adani companies have taken large debt, including pledging shares of their inflated stock for loans, putting the whole group on a precarious financial footing. On January 21, Reuters reported that ealier Adani Chief Financial Officer Jugeshinder Singh said that Nobody has raised debt concerns to us. There isn't a single investor. Adani Enterprises, the flagship company of the Port-to-Energy conglomerate Adani Group, said it will raise $2.5 billion in India's largest follow-on public offering on Friday.

Adani Enterprises is looking to raise Rs 20,000 crore via a follow-on public offer, which has emerged from a report.

Ahead of the FPO, Gautam Adani, Adani Group Chairman, said the company's strongest growth is still ahead. He said the mega FPO is part of a 10 year capital planning cycle that is supported by a de-risk growth plan that is aligned with India's growth story and aligned with the group's capabilities.

Adani said India is on its way to be a $30 trillion economy by 2050 and that his businesses are aligned with India's ambitions of transitioning to Bharat par Nirbhar world, based on the self-reliant India of Atmanirbhar Bharat.