Adani stocks tumble up to 10% as rout extends to Day 4 on Hindenburg blow

NEW DELHI: Having lost one-fourth of its market value in the last three trading sessions in the aftermath of the Hindenburg report, Adani stocks lost up to 10% on the fourth day of the selloff. Out of 10, eight stocks from billionaire Gautam Adani's empire were trading in the negative zone.

Two stocks - Adani Transmission and Adani Green Energy - hit fresh 52-week low levels on Tuesday.

On the other hand, four other stocks hit their respective lower circuit limits during the trading session. NDTV hit its 5% lower circuit limit at Rs 231.40, Adani Power was down 5% at Rs 223.90 and Adani Wilmar also lost 5% at Rs 466.90. Adani Total Gas was locked in the 10% lower circuit at Rs 2,112.90

The Ahmedabad-based conglomerate's flagship unit Adani Enterprises, whose Rs 20,000 crore FPO ends today, was trading over 2% higher at Rs 2,943.

Ambuja Cements, which has denied any buyback plans in an exchange filing, was also trading with a positive bias at Rs 392.

In the last three trading days, Adani stocks have lost Rs 5.17 lakh crore of their market value.

Adani's team has so far maintained that it will not change the dates or price band of the FPO, which received only 3% bids till yesterday.

In a 413-page strong rebuttal to the 88 questions asked by the New York-based short-seller, the Adani Group has raised questions on the motivation behind the report and said it is case of unethical short selling by a foreign entity by publishing a report to manipulate and depress the price of stock, and create a false market.

This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India, Adani said.

In its reply to Adani's letter, Hindenburg said the explanations efy common sense. "In terms of substance, Adani’s ‘413 page’ response only included about 30 pages focused on issues related to our report. The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables," it said.