Early trading on Adani equities shows conflicting tendencies; Adani Enterprises rises

After releasing a 413-page rebuttal to accusations of malfeasance made by US-based short seller Hindenburg Research, shares of Adani group businesses traded in uneven fashion on Monday morning, with flagship Adani Enterprises rising 10% despite other group companies falling.

On Monday, the majority of the group companies plummeted for the third straight day, with Adani Total Gas falling 20%, Adani Transmission sinking 19.14%, Adani Green Energy seeing a decline of 18.99%, Adani Power falling 5%, Adani Wilmar falling 5%, and NDTV falling 5% on the BSE.

But both Adani Enterprises and Adani Ports saw 10% increases in their respective stock prices.

Ambuja Cements and ACC shares both rose 11.84% and 10%, respectively.

The group enterprises have together lost around Rs 5.54 lakh crore in market value between Tuesday last week to this morning's session.

Due to Republic Day, stock markets were closed on Thursday.

After damning claims were made by Hindenburg Research on Friday, the Adani group stocks dropped as much as 20% and had lost more than Rs 4.17 lakh crore from the aggregate market worth of listed companies.

On Sunday, Gautam Adani's group expressed optimism that the Rs 20,000 crore follow-on share sale of its flagship company will go smoothly despite a sharp decline in the conglomerate's stock price in the wake of a damning report by a short seller located in the US.

The follow-on public offer (FPO) of Adani Enterprises Ltd. is the best vehicle for strategic institutional investors to own a piece of the conglomerate's rapidly expanding airports, mining, roads, new energy, and data center businesses, according to Group CFO Jugeshinder Singh, who also stated that no change in offering price or schedule is being considered due to temporary market volatility.

"It is crucial to note Adani Enterprises' assertion that the FPO is proceeding according to plan and that the pricing range has not changed. This might be seen as a sign that management believes the FPO will succeed "the chief investment strategist at Geojit Financial Services, V K Vijayakumar, remarked

Adani Group claimed that Hindenburg Research's research was an assault on India, however Hindenburg Research has refuted this claim, claiming that nationalism or a bloated response that omitted major claims cannot obscure a "fraud."

Hindenburg commented on the 413-page statement Adani Group produced late on Sunday night in response to its research, saying it thought India was a thriving democracy and a developing powerhouse with a promising future and that Adani Group was holding it back by "systematic plunder."

The two-year investigation conducted by Hindenburg revealed that Adani Group had "engaged in a blatant stock manipulation and accounting fraud scheme over the course of decades," according to the report released last week.

In the meanwhile, the Sensex and Nifty, two stock indices, erased early gains and were trading lower.

While the Nifty traded 55.80 points down at 17,551.30, the 30-share BSE benchmark was quoted 161.08 points lower at 59,169.82.