On January 24, 2023, Hindenburg Research released a report alleging that the Adani Group, a major conglomerate in India, had been involved in a long-standing scheme of stock manipulation and accounting fraud. The publication of this report occurred just days prior to the scheduled USD 2.5 billion share offering by Adani Enterprises, the conglomerate’s primary company.
Hindenburg Research Report levelled further allegations against the Adani Group, accusing them not only of accounting fraud but also of participating in suspicious transactions worth billions of dollars with Vinod Adani, the brother of the group’s chairman. According to the report, the conglomerate allegedly utilized a network of offshore shell entities controlled by Vinod Adani for the purpose of stock manipulation.
The Indian Stock Exchange has a total of 10 listed companies belonging to the Adani group. Following the wide circulation of a published report, these stocks experienced a significant decline, causing widespread fear among investors. In fact, some of the Adani stocks were even subjected to lower circuit limits, compounding the concerns surrounding their sharp decline.
Also Read: Journey of Adani Group Stocks
Let’s try to analyse how much these stocks fell after the report and how much they have recovered till today:
| Company Name | CMP | Market Cap (in Crores) | Closing Price on 24 Jan 23 | 52-Week low | Fall After Report | Recovery from 52-week low |
| Adani Total Gas ltd | 698 | 76820 | 3892 | 633 | -84% | 10% |
| Adani Transmission ltd | 804 | 89703 | 2762 | 631 | -77% | 27% |
| Adani Green Energy ltd | 966 | 153159 | 1916 | 439 | -77% | 120% |
| Adani Enterprises ltd | 2496 | 284646 | 3442 | 1017 | -70% | 145% |
| Adani Power ltd | 251 | 96867 | 275 | 132 | -52% | 90% |
| Adani Ports ltd | 734 | 158576 | 761 | 395 | -48% | 86% |
| NDTV ltd | 250 | 1619 | 284 | 158 | -44% | 58% |
| Adani Wilmar ltd | 436 | 56608 | 573 | 327 | -43% | 33% |
| Ambuja Cements ltd | 431 | 85592 | 498 | 315 | -37% | 37% |
| ACC ltd | 1798 | 33786 | 2336 | 1592 | -32% | 13% |
Let’s delve deeper into the shareholding pattern of these companies. Observation reveals that retail investors increased their shareholding in Q4FY23 compared to Q3FY23. On the other hand, foreign institutional investors (FIIs) increased their stake in four Adani group stocks, while domestic institutional investors (DIIs) increased their stake in five companies. The following demonstration illustrates where and how much these participants have invested.
|
Investor Type >> |
FII |
DII |
Public |
|||
|
Company Name |
Dec-22 |
Mar-23 |
Dec-22 |
Mar-23 |
Dec-22 |
Mar-23 |
|
Adani Enterprises ltd |
15.39 |
17.75 |
5.45 |
5.15 |
6.53 |
7.87 |
|
Adani Green Energy ltd |
15.14 |
17.13 |
1.4 |
1.45 |
22.7 |
24.16 |
|
Adani Ports ltd |
13.77 |
17.99 |
14.46 |
13.02 |
6.62 |
7.95 |
|
Adani Power ltd |
12.88 |
11.7 |
– |
0.01 |
12.15 |
13.32 |
|
Adani Transmission ltd |
19.32 |
21.04 |
3.78 |
3.8 |
2.72 |
3.51 |
|
Adani Total Gas ltd |
17.25 |
16.32 |
6.09 |
6.14 |
1.85 |
2.75 |
|
Adani Wilmar ltd |
1.57 |
1.27 |
0.14 |
0.11 |
10.35 |
10.68 |
|
11.95 |
10.05 |
18.64 |
19.51 |
12.55 |
13.57 |
|
|
Ambuja Cements ltd |
10.66 |
11.16 |
16.74 |
14.48 |
9.13 |
10.87 |
|
5.33 |
3 |
– |
– |
24.96 |
27.28 |
|
Despite the recovery in overall stock prices only two stocks, namely ACC Ltd and Adani Total Gas Ltd, exhibited a sluggish pace in their rebound from their respective 52-week lows. It is noteworthy that among the Adani Group stocks, these two companies struggled to regain their previous positions. Despite both ACC Ltd and Adani Total Gas Ltd being profitable companies, with reported PAT of Rs 236 crore and Rs 546 crore, respectively for FY23, their performance has been lackluster thus far.
