- 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.
All the nine Adani Group stocks witnessed a battering in the first hour of trading on Monday. On Friday, ratings agency Moody’s
cut the outlook for four companies, citing a rapid decline in the market value.
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.
Company | Current market price | Change in market cap |
Adani Enterprises | ₹1,766 | -₹12,589 crore |
Adani Total Gas | ₹1,192.65 | -₹7,668 crore |
Adani Transmission | ₹1,127.35 | -₹7,350 crore |
Adani Green | ₹688.05 | -₹6,371 crore |
Adani Ports & SEZ | ₹569.15 | -₹3,423 crore |
Adani Power | ₹156 | -₹3,329 crore |
Adani Wilmar | ₹416.7 | -₹2,627 crore |
Ambuja Cements | ₹350.5 | -₹1,938 crore |
ACC | ₹1,840.55 | -₹750 crore |
Total | | -₹46,045 crore |
Source: NSE, as of 10 a.m., February 13, 2023Amongst 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.
Company | Change in share price since January 24 |
Adani Total Gas | -69% |
Adani Green | -64% |
Adani Transmission | -59% |
Adani Enterprises | -49% |
Adani Power | -43% |
Ambuja Cements | -30% |
Adani Wilmar | -27% |
Adani Ports & SEZ | -25% |
ACC | -21% |
Moody’s cites rapid market cap decline in its outlook cut
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.
RBI governor says Indian banks compliant with regulations on Adani group exposure
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.
SEE ALSO:
Sensex, Nifty50 may see a muted opening; Adani Group stocks, Delhivery, Nykaa, Policybazaar in focus
RBI continues to ‘watch inflation’ closely even as industry hopes for a pause
RBI hikes interest rate by 25 bps to 6.5%, says core inflation remains ‘sticky’