- The combined market capitalization of the nine
Adani Group companies fell by ₹46,045 crore in the first hour of trading on Monday. - Earlier on Friday, ratings agency Moody’s cut its outlook on four companies of the group, citing a rapid decline in their market value.
- All the nine
Adani Group companies were trading in the red as of 10 am, on Monday, with four of them hitting lower circuits.
As of 10 am on Monday, the nine Adani Group companies’ cumulative market capitalization declined by ₹46,045 crore, with four companies’ stocks hitting their respective lower circuits.
The total decline in the group’s market capitalization to ₹11.6 lakh crore since January 24 when the Hindenburg report was first published. The report had alleged that the group engaged in stock manipulation and accounting fraud, amongst others.
As a result, the Adani Group’s current market capitalization stands at ₹10.34 lakh crore, which is just 47% of what it was on January 24.
The rout in Adani group stocks has also resulted in Gautam Adani going from being third to the 21st richest person in the world on the Bloomberg Billionaires Index. His wealth stands at $55.8 billion now, down by $63.2 billion since January 24, when Hindenburg’s report was published.
Source: NSE, as of 10 a.m., February 13, 2023
Amongst the nine group companies, Adani Total Gas has lost the most value at 69%, while cement maker ACC has been the most resilient, losing only 21% of its value.
The rating agency announced a change in its outlook on Adani Group companies following the rout in the group’s stocks.
Moody’s downgraded its outlook to ‘negative’ from ‘stable’ for Adani Green Energy, Adani Green Energy Restricted Group, and two subsidiaries of Adani Transmission.
“These rating actions follow the significant and rapid decline in the market equity values of the Adani Group companies following the recent release of a report from a short-seller highlighting governance concerns in the group,” Moody's said in its note.
However, Moody’s retained its outlook for Adani Ports & SEZ, Adani International Container Terminal and two other companies.
In a press conference following the Reserve Bank of India’s monetary policy meeting on Wednesday, RBI governor Shaktikanta Das said that Indian banks are in compliance with its regulations as far as exposure to the Adani group is concerned.
"The RBI has made its own assessments. The large exposure guidelines prescribed by the RBI are fully complied with by all the banks,” Das said.
"When banks lend money to a company or a group of companies, the banks do not lend on the basis of market capitalisation of that particular company," he added.
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