Adani stocks scorecard on Day 3: M-cap loss swells to Rs 5.5 lakh crore

NEW DELHI: After two distressing days in which Adani stocks lost up to Rs 4.2 lakh crore in market value, three out of 10 counters from billionaire Gautam Adani's empire managed to throw bears out of action on Monday.

Shares of ACC, Adani Enterprises and Ambuja Cements managed to end in the green zone. On the other hand, the pain was endless in Adani Green Energy and Adani Total Gas slumped up to 20% each. Adani Transmission ended with a 15% cut while Adani Ports ended 0.3% lower.

The remaining three Adani stocks - Adani Power, NDTV and Adani Wilmar - were locked in the 5% lower circuits.

Taking the total market capitalisation erosion to Rs 5.5 lakh crore in a span of just three trading sessions, investors in Adani stocks lost Rs 1.4 lakh crore in Monday's session.

Despite the current market share price of Adani Enterprises going below the FPO price band of Rs 3,112-3,276, the conglomerate has said that it will neither change the dates nor the price band. The Rs 20,000 crore FPO, which began last week, ends tomorrow.

"Price is not relevant to large, strategic, inter-generational investors. Yes, the retail participation gets affected but an FPO gives us the opportunity to cover the buckets of strategic long-term investors, ultra HNIs, family offices," Adani Group CFO Jugeshinder Singh said.

In a 413-page long rebuttal, the conglomerate has denied all allegations around accounting frauds, stock manipulation and other corporate governance issues made by Hindenburg saying the short seller masterminded the “mischievous” report to short-sell the stocks and make unethical gains.

Hindenburg took “short positions” and then, to effect a downward spiral of share price and make a wrongful gain, Hindenburg published a document to manipulate and depress the price of stock, and create a false market," Adani said, adding that Hindenburg’s conduct is nothing short of a calculated securities fraud under applicable law.

What's behind the rally in Adani Ports and Ambuja Cements?
The two Adani stocks were in focus on Friday after ET reported that the Group is considering a share buyback of Adani Ports and Ambuja Cements worth up to Rs 3,000 crore. Talks are at an advanced stage and formal announcements by the company boards will be made in the coming weeks, the report said.

Adani bulls have been enjoying a one-way rally that defied gravity and all valuation metrics in the last few years. In the last 5 years, Adani Enterprises stock has gone up 15 times, Adani Power 7 times and Adani Transmission 8 times.

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