Market capitalization of the Adani Group doubles from lows

MUMBAI: The conglomerate’s total market capitalization has more than doubled from a low of Rs 6.8 lakh crore recorded on Feb 27, 2023, a year after US short-seller Hindenburg Research released a devastating report on the Adani Group, which resulted in significant wealth loss.

The group’s aggregate market valuation, however, is still Rs 4.7 lakh crore behind its all-time high of Rs 19.2 lakh crore as of Jan 24, 2023, which was reached only hours before Hindenburg released its analysis, at Rs 14.5 lakh crore.
The US-based short-seller accused the organization of corporate misconduct in the more than 100-page study. The organization rejected the report and refuted every accusation.
Screenshot 010518-2024-01-25
Just three of the ten firms in the Adani Group have seen a rise in stock prices. Adani Power is the greatest gain since the Hindenburg report. On February 28, 2023, it had dropped to Rs 133, a multi-year low, from Rs 275 precisely a year earlier. It has now almost doubled to Rs 520.
Adani Ports & SEZ and Ambuja Cements are the two other equities that are out of the woods in addition to Adani Power. According to BSE statistics, Ambuja Cements is up only 6%, while Adani Ports & SEZ is up 47%.
Adani Total Gas, on the other hand, was the largest value killer during the last year. According to BSE statistics, the joint venture between the business and TotalEnergies of France has lost 74% of its value, with its market capitalization currently standing at Rs 1.1 lakh crore as opposed to Rs 4.3 lakh crore a year ago.
The second significant killer of wealth is Adani Energy Solutions. Just one day before to the release of the Hindenburg report, the company’s valuation was Rs 3.1 lakh crore; it has now dropped by 62% to Rs 1.2 lakh crore.
Adani Group stocks finished mixed on Wednesday in the robust market, with ACC up 1.3% and Adani Green down 2.5%.
The market saw significant volatility throughout the day’s session, but a late buying frenzy enabled the sensex to finish 1% higher at 71,060, up 670 points, while the Nifty gained 215 points to 21,454. Reliance Industries, Infosys, and HDFC Bank made up the majority of the day’s gains.
Foreign investors were strong sellers, with a Rs 6,935 crore net outflow. According to CDSL and BSE statistics, foreign investors have net sold Indian equities worth around Rs 30,000 crore during the last seven days.
On the other hand, local funds were net purchases at Rs 6,013 crore, more than offsetting the significant foreign investor selling.
Apart from the firms that comprise the Nifty and sensex, Zee Entertainment’s stock price saw some recovery after a 33% decline on Tuesday. Following the news on Monday that it was ending its two-year-long, around $10 billion merger with global media giant Sony, the stock had plummeted. The stock ended the day Wednesday up 6.7%.