Adani Stocks Inculding Shares of Adani Power, Adani Enterprises, and Adani Energy Solutions experienced a sharp downturn on the stock market today. Power and Energy Solutions shares suffered particularly heavy losses, falling by 10.94% and 17.06% respectively, while Enterprises saw a more moderate decline of 5.27%.
Adani Stocks Inculding Shares of Adani Power, Adani Enterprises, and Adani Energy
Shares of several Adani Group companies took a significant hit on Monday, plummeting by as much as 17%, after US short-seller Hindenburg Research leveled new accusations against the conglomerate. The report alleged connections between SEBI Chairperson Madhabi Puri Buch and her husband to an offshore fund linked to the Adani Group. Despite denials from the Adani Group, SEBI, and the Buchs, investor sentiment turned negative, leading to a sharp decline in Adani stock prices.
Adani Group stocks continued to face headwinds on Monday, with shares plummeting across the board. Despite analysts predicting a short-lived downturn, Adani Power suffered a steep 10.94% decline, hitting a low of Rs 619 per share. The flagship company, Adani Enterprises, also took a significant hit, falling 5.27% to Rs 3,018.55. Adani Energy Solutions experienced the most dramatic drop, plunging 17.06% before partially recovering. Adani Green Energy was also caught in the sell-off, closing 6.96% lower.
Adani Group stocks plunged on Monday, with Adani Total Gas leading the decline, falling over 13% before recovering partially. Adani Wilmar and Adani Ports also faced significant losses, while ACC, Ambuja Cements, and NDTV saw a drop of 2-3% each.
Hindenburg alleged that the IPE Plus Fund, where the SEBI chief had invested, had deep connections to the Adani Group beyond being a potential conduit for Vinod Adani’s funds. The fund’s founder and CIO, Anil Ahuja, held multiple director positions at Adani Enterprises for nine years until 2017 and previously served as a director at Adani Power, according to his biography and public records.
Dismissing the allegations, the Adani Group asserted that Anil Ahuja’s involvement with the company was limited to a nominee director role for 3i Investment Fund in Adani Power between 2007 and 2008, followed by a directorship in Adani Enterprises until 2017. The Group firmly stated that no current commercial relationship exists with Ahuja or any entities connected to the claims, which it characterizes as a malicious attempt to damage its reputation.
Moreover, the SEBI chief explained that the decision to allocate funds was primarily influenced by the Chief Investment Officer, Anil Ahuja, a longtime acquaintance of Dhaval’s from their shared educational background. Ahuja’s extensive investment experience, honed through roles at prominent financial institutions like Citibank, J.P. Morgan, and 3i Group plc, was instrumental in their investment choice. Notably, the investment was liquidated upon Ahuja’s departure from the fund in 2018. Furthermore, both parties categorically denied any exposure to Adani Group securities, either directly or through derivatives, as confirmed by Ahuja.
Vinit Bolinjkar of Ventura Securities contended that Hindenburg’s claims are devoid of new evidence and represent a desperate attempt to link unrelated events.
Bolinjkar predicted a temporary market and Adani stock downturn due to the report’s impact, but anticipated a swift recovery. Bathini concurred, suggesting that significant price drops in Adani group shares could present a buying opportunity. Emphasizing the fundamental driver of stock prices, Bathini, Director of Equity Strategy at WealthMills Securities, stated that earnings are the ultimate determinant.
Bathini expressed more concern about potential earnings impacts than the allegations themselves. He noted that most claims in the Hindenburg report are not new information and the market is already aware of them. While he acknowledged a possible short-term market reaction, Bathini believes the Adani Group’s long-term earnings prospects remain unaffected.
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