Adani Group stocks entered into a bloodbath on Thursday, November 21, 2024, free falling by a huge 10% to 25%. Four of the Adani stocks touched their lower circuits including heavyweights Adani Enterprises and Adani Ports. Together, more than Rs 2.79 lakh crore of investors wealth has been wiped out from Adani Group. The latest frenzy selling in Adani stocks is due to an indictment on Gautam Adani, his nephew Sagar Adani and other executives in the federal court of United States for bribery and fraud.
Adani Group Stocks On November 21:
Adani Enterprises: The flagship company of Adani Group, nosedived so much so that it erased its 20% lower circuit, and traded at 2,171.60 apiece down by 22.99%. This led to Rs 74,832.92 crore erosion in its m-cap to Rs 2,50,669.12 crore compared to its m-cap of Rs 3,25,502.05 crore on November 19. The flagship witnessed the most erosion.
Adani Ports: The ports giant also froze at its 20% lower circuit to Rs 1,031.25 apiece, taking its m-cap to Rs 2,22,764.33 crore which dipped by Rs 55,688.38 crore from m-cap of Rs 2,78,452.71 crore on November 19.
Adani Green Energy: The Group's green energy stock nosedived by as much as 19.53% on BSE to hit an intraday low of Rs 1136.00 apiece. Its market cap tumbled by Rs 43,674.11 crore to Rs 1,79,951.67 crore, compared to Rs 2,23,625.79 crore on November 19.
Adani Power: The power company stock plunged by nearly 18% to hit an intraday low of Rs 430.85 apiece. This led to an erosion of Rs 35,961.09 crore in its market cap to Rs 1,66,181.07 crore, compared to the m-cap of Rs 2,02,142.17 crore on November 19.
Adani Energy Solutions: This energy stock of Gautam Adani also froze at its 20% lower circuit of Rs 697.70 crore, which is also its new 52-week low. Accordingly, the company's market cap stood at Rs 83,813.49 crore, down by Rs 20,950.37 crore from the m-cap of Rs 1,04,763.86 crore on November 19. Hence, Adani Green is now out of Rs 1 lakh crore companies club.
Ambuja Cement: Adani Group's cement giant stock plunged by at least 17.59% to hit an intraday low of Rs 452.90 crore. Due to this, the market cap of Ambuja has tumbled by Rs 23,812.15 crore to Rs 1,11,561.11 crore, compared to Rs 1,35,373.27 crore on November 19.
These are the top most valued companies of the Adani Group. Sharp selling in them has dragged the overall market cap of Adani Group.
Among other stocks Adani Total Gas dipped by 18.14%, losing a market cap of around Rs 13,412 crore. Further, ACC stock dipped by 14.54%, eroding about Rs 5,967.89 crore of m-cap. Additionally, the conglomerate's media stock slid down by 14.4%, recording a decline of Rs 156.38 crore in m-cap and toppling out of the Rs 1,000 crore market cap club.
Lastly, FMCG stock Adani Wilmar also froze at its 10% lower circuit to Rs 294.40 apiece, which was also its new 52-week high. The m-cap of this company dipped by Rs 4,321.43 crore.
Together, in the early trade of November 21, Adani Group stocks' cumulative market cap fell by about Rs 278,778 crore.
Adani Group Stocks
November 21
Market Cap Loss (Rs In Crore)
Adani Enterprises
-22.99%
74,832.92
Adani Ports
-20%
55,688.38
Adani Power
-18%
35,961.09
Adani Green Energy
-19.53%
43,674.11
Adani Energy Solutions
-20%
20,950.37
Adani Total Gas
-18.14%
13,412.75
Adani Wilmar
-10%
4,321.43
ACC Ltd
-14.54%
5,967.89
Ambuja Cements
-17.59%
23,812.15
NDTV
-14.37%
156.38
Why Adani Shares Are Falling?
The reason for the decline in Adani stocks is because their chief Gautam Adani and seven other senior business executives are indicated in the United States of America (USA) for bribes worth $250 million to US investors. Additionally, Gautam and his nephew Sagar Adani along with others are accused of bribing Indian government officials for solar contracts. A five-count criminal indictment has been unsealed in federal court in Brooklyn.
As per the statement of the US Attorney's Office, between approximately 2020 and 2024, the accused is alleged to have bribed Indian government officials to pay more than $265 million to obtain lucrative solar energy supply contracts with the Indian government. These were projected to generate more than $2 billion in profits after tax over an approximately 20-year period (the Bribery Scheme).
The report also revealed that on many occasions Gautam Adani personally met with an Indian government official to advance the Bribery Scheme, and the defendants held in-person meetings with each other to discuss aspects of its execution.
It was further revealed that it was during these periods that Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain allegedly conspired to misrepresent the Indian Energy Company's anti-bribery and corruption practices and conceal the Bribery Scheme from U.S. investors and international financial institutions to obtain financing, including to fund those solar energy supply contracts procured through bribery.
However, it said, "The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty."
Click it and Unblock the Notifications
Sign in with Google