Tribune News Service
New Delhi, February 9
Shares of nine out of 10 listed Adani Group firms slipped on Thursday, with several hitting the lower circuit-breaker, amid reports that Norway’s sovereign wealth fund, the world’s largest investor in shares, has withdrawn all its money from the company’s stocks. In the UK, a probe is reportedly underway into the affairs of a Adani-linked company from which former UK PM Boris Johnson’s brother Jo recently quit his Board position.
Shares of the flagship company Adani Enterprises, which had risen all of this week, dipped 11%. Adani Ports also fell 2.83% as did Adani Power, Adani Transmission, Adani Green and Adani Total Gas, all by 5% each. Ambuja Cements slipped 6.98%, NDTV 4.98% and ACC 2.93%. Only Adani Wilmar rose 5% to hit the upper circuit-breaker.
In the last two trading sessions on Tuesday and Wednesday, Adani Group companies had recovered around Rs 70,000 crore in market capitalisation. Today’s losses would mean the group is still in the red by about Rs 9 lakh crore since the Hindenburg Research alleged accounting fraud in the Adani Group.
Sentiment was also dampened by the announcement from financial index provider Morgan Stanley Capital International (MSCI) that it is reviewing the free float status of Adani Group securities due to some concerns from market participants. Another factor was the decision of the French Total Group to put on hold its venture with Adani for a $-50 billion foray in hydrogen fuel.
Moody’s has already warned that share price declines could hit the Adani Group’s ability to raise capital. Hindenburg Research founder Nathan Anderson termed the MSCI statement as “validation of our findings”.
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