RS 7 lakh crore: Losses suffered by investors in listed Adani companies since first Hindenburg report in Jan 2023

On November 21, investors wealthiness plummeted by 2.22 lakh crore arsenic investors dumped Adani stocks, starring to a nonaccomplishment of up to 23 per cent successful these stocks, pursuing the improvement successful the US court.

Adani stocks were battered for implicit a period starring to a autumn of $140.1 cardinal to $80.67 cardinal successful marketplace capitalisation of Adani companies by February 27, 2023. However, it recovered gradually adjacent arsenic GQG invested implicit Rs 15,000 crore successful Adani companies and the full capitalist wealthiness roseate to a precocious of $ 229.87 cardinal (Rs 19.42 lakh crore) by June 3, 2024. However, a caller acceptable of allegations was raised by Hindenburg involving Sebi Chairperson Madhabi Puri Buch led to a diminution successful stock prices.

Quoting “whistleblower documents”, Hindenburg alleged connected Saturday that Sebi main Madhabi Puri Buch and her husband, Dhaval Buch, had stakes successful offshore funds utilized successful the alleged Adani wealth siphoning scandal. The Buchs denied the allegation and Sebi said that it has capable interior mechanisms for addressing issues relating to struggle of interest, including a disclosure model and provisions for recusal.

Market capitalisation of Adani companies declined to Rs 14.49 lakh crore by November 19, 2024 amid the wide weakness successful the marketplace that led to an 8,800-point autumn successful the benchmark Sensex since September 27 this year. “The emergence and autumn successful Adani shares implicit assorted issues has created uncertainty astir investing successful these stocks. High volatility successful stocks is not a bully motion for retail investors and funds,” said a marketplace participant.

While communal funds, security companies person vulnerability to respective Adani radical companies, fiscal institutions led by LIC are important shareholders successful Adani companies. While retail holding is beneath 10 per cent but for Adani Wilmar, retail investors clasp 2.78 per cent involvement successful Adani Enterprises, the emblem vessel of the group. They besides clasp 9.2 per cent successful ACC, 5.46 per cent successful Adani Total, 4.8 per cent successful Adani Power and 4.6 per cent successful Ambuja Cement.

Experts accidental that since the radical has been precise volatile implicit the past 2 years and respective adverse reports person led to crisp diminution successful stock prices of the radical companies, investors should look for vulnerability successful much unchangeable entities. When considering investing successful Adani radical companies, marketplace participants urge retail investors to absorption connected those businesses that are unchangeable and are generating bully currency flows.