Adani group stocks meltdown continues on Monday – Adani Enterprises sees the biggest decline

• The meltdown in Adani group stocks resumed on Monday, with the flagship Adani Enterprises witnessing the most selling.
  
• The cumulative market capitalisation of the nine Adani group companies declined by ₹30,622 crore on Monday.
  
• Last week, the combined market capitalisation of the Adani group fell by ₹1.1 lakh crore.
  

The meltdown in Adani group stocks resumed on Monday, with the flagship Adani Enterprises witnessing the most selling. The cumulative market capitalisation of the nine Adani group companies declined by ₹30,622 crore on Monday.

The sell-off in the Adani group stocks continued despite India Inc. and the government hitting back at George Soros, who last week said that the Adani crisis would lead to a “democratic revival in India”.

Last week, the combined market capitalisation of the Adani group fell by ₹1.1 lakh crore. With today’s decline, the cumulative market capitalisation of the nine Adani group companies has fallen to ₹9.39 lakh crore – this is 42.8% of what it was on January 24, when the Hindenburg Research report was first published alleging stock manipulation and accounting fraud by the group. Since then, the total decline has ballooned to ₹12.56 lakh crore.


Source: NSE, as at 3:30 p.m., February 20, 2023

Gautam Adani’s wealth has also seen a rapid decline, falling to $49.1 billion from $119 billion on January 24, according to Bloomberg Billionaires Index, which is a decline of nearly $70 billion in 26 days since the report was published.

DLF’s KP Singh says Adani crisis won’t affect faith of global investors in India

DLF chairman emeritus, KP Singh said in an hour-long interview with PTI that the Adani crisis won’t affect the faith of global investors in India.

He, however, felt the Adani group needs to "beef up" capital and cut down debt to continue to remain on the high growth trajectory.

"India is too big a country today. So this story will die down. Investment will not be hurt,” Singh added.

Known for his plain speaking, Singh cited how a Canadian firm had threatened to bring out a report when his retail estate firm DLF was bringing out an IPO one-and-a-half-decade back.

"We said push-off (to the Canadian firm)... do whatever you can ," he said, adding there are "blackmailers" who bring out reports around any big share sale.

External affairs minister hits back at Soros

On Saturday, external affairs minister S Jaishankar was the latest to hit back against noted businessman and philanthropist Soros, calling him “old, rich, opinionated, and dangerous”. He added that Soros “still thinks that his views should determine how the entire world works.” Jaishankar made these observations at the Raisini@Sydney Dialogue on Saturday.

Last week, Soros said that the Adani group crisis will spur a “democratic revival in India”, adding that Prime Minister Narendra Modi will have to answer questions about the allegations of stock manipulation and accounting fraud against the group.

“Adani Enterprises tried to raise funds in the stock market, but he failed. (Gautam) Adani is accused of stock manipulation and his stock collapsed like a house of cards. Modi is silent on the subject, but he will have to answer questions from foreign investors and in parliament,” Soros said.

Hitting back at Soros, union minister Smriti Irani had said, “George Soros, who hedges bets against many countries, has now made known his ill intentions in the democratic processes of India. Those who support Soros need to know that democracy has prevailed in India and continues to do so.”


(With inputs from PTI)

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