Shares of Adani group's flagship Adani Enterprises Ltd recovered and closed Friday in the green after falling 35% and hitting a new 52-week low at Rs1,017.10 in early trading. Three other companies from the Adani group, Adani Ports And Special Economic Zone Ltd, Ambuja Cement Ltd and ACC Ltd, also recovered from an early loss and closed the week in the green.
On Friday morning, seven out of the 10 Adani group companies hit lower circuits. After falling 35% to hitting a new 52-week low at Rs1,017.10, Adani Enterprises recovered and ended the day 1.25% up at Rs1,584.20 on the BSE. The 30-share Sensex ended the week 1.52% up at 60,841.88 points. From its 52-week high of Rs4,189.55, reached on 20 December 2022, Adani Enterprises has lost nearly 62% as of Friday.
Shares of Adani Ports And Special Economic Zone, Ambuja Cement and ACC closed Friday 7.98%, 6.03% and 4.39% higher at Rs498.85, Rs373.70 and Rs1926.30, respectively.
Adani Transmission Ltd and Adani Green Energy Ltd, however, hit 10% lower circuits and a new 52-week low at Rs1,401.55 and Rs934.25, respectively.
Shares of four other companies from the Adani group that hit 5% lower circuits are: Adani Power Ltd (Rs192.05), Adani Total Gas Ltd (Rs1,625.95), Adani Wilmar Ltd (Rs400.40) and New Delhi Television Ltd (NDTV) (Rs211.75).
Separately, S&P Dow Jones Indices
says it has decided to remove Adani Enterprises from Dow Jones Sustainability Indices following a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.
The Adani group on Wednesday evening decided to call off its Rs20,000 crore follow-on public offer (FPO) of Adani Enterprises, citing the unprecedented situation and the current market volatility.
In a regulatory filing, Gautam Adani, chairman of Adani group, says, "...the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company's board felt that going ahead with the issue will not be morally correct. The interest of the investors is paramount and hence to insulate them from any potential financial losses, the board has decided not to go ahead with the FPO." (Read: Adani Enterprises Withdraws FPO, To Refund Money to Investors
Adani Enterprises has also decided to withdraw its RHP filed with RoC in Gujarat. "...decided not to proceed with the offer and withdraw the RHP on account of the prevailing market conditions because of which there has been extreme volatility in the stock price of the company, other commercial and strategic considerations, and in order to protect the interest of the investors," it says in a regulatory filing.
The company also decided to terminate agreements with its book-running lead managers for the FPO. "Further, we wish to inform you that the company shall forthwith refund to the bidders the entire application bid amounts or subscription amount received in the offer in accordance with applicable law. In the event that there is a delay in making refunds beyond such period as prescribed under applicable law, the company shall pay the requisite interest to the bidders in the offer at such rate as prescribed under applicable law."
Remember Harshad Mehta 1990-1992? His middle name was my Father's first name "Shantilal". Mme Sucheta Dalal became a star exposing him. I was involved al-be-it indirectly as Advisor to Kothari in Chennai. Under cover of Mehta's scam, the Kothari sibling - married to a sister of Ambani, bought up his shares driving it up from under Rs 20 to as high as Rs 140. I begged him to sell, but he refused. The stock eventually came down to Earth and then disappeared. The sibling could afford the loss married into the Ambani family. Unfortunately, we are retained and paid by many Indian tycoons and would-be tycoons but theynever follow our advice. MY Q to you is - that was 30 years ago. Has anything changed? Not just in India but also in the UK and the USA. It has gotten worse. With derivatices, indexes, ETF's galore, Killer Whales and Great White Sharks prowl and prey on greed of the small retail investor. To her credit, Sucheta tries hard to expose scams when she sees them with one eye on "solicitors" as scammers resort to solicitors to silence whistleblowers.