According to a January 24 analysis by Hindenburg Research, seven publicly traded Adani Group companies are 85% down on a fundamental basis due to extraordinarily high valuations. The report raised questions about debt levels and the possible illegal use of tax havens.
Shortly after the report was published, the market capitalization of Adani Group companies fell by almost $1 lakh crore as a result of a major stock market correction. The next day, when trading restarted, Adani Group companies continued to lose money, driving the market capitalization decline from two days to $4 lakh crore.
The conglomerate postponed a crucial $2.5 billion share sale due to market volatility, increasing its market losses to more than $100 billion and raising concerns about a possible systemic impact. As a result, Adani Group shares plunged further on February 2.
If we compare how various Adani entities lost their value between January 24, when the Hindenburg report was released, and February 3, the last trading day so far; we will notice a significant impact.
Cement producer ACC was in $43,869 crores on January 24 and lost 17.54% to reach $36,173 crores on February 3. Adani Enterprises, the Conglomerate’s flagship company, was in $3,92,474 crore on January 24 and lost 53.98% to reach $1,80,599 crores on February 3.
Adani Green Energy went from $3,03,113 crores to $1,47,988 crores, losing 51.17% of its value. Adani Ports lost 34.43% and went from $1,64,354 crores to $1,07,758 crores. With a loss of 30.11%, Adani Power was valued at $74,072 crores on February 3, $1,05,989 crores on January 24.
Adani Total Gas lost 58.15% of its value and went from $4,27,326 crores to $1,78,824 crores. Adani Transmission lost 49.14% and became $1,56,342 crores of being a $3,07,447 crore company.
Adani Wilmar went from $74,491 crores to $52,039 crore, down 30.14%, while Ambuja Cements lost 25.04%, falling to $74,204 crores of $98,994 crores. The total market capitalization of the Adani Group fell by 47.44% to reach $10,07,999 crores of $19,18,056 crores.
| January 24 | February 3rd | CHANGE (%) | |
| ACC | 43,869 | 36,173 | -17.54 |
| Adani Enterprises | 3,92,474 | 1,80,599 | -53.98 |
| adani green energy | 3,03,113 | 1,47,988 | -51.17 |
| Adani Ports | 1,64,354 | 1,07,758 | -34.43 |
| adani power | 1,05,989 | 74,072 | -30.11 |
| Adani Total Gas | 4,27,326 | 1,78,824 | -58.15 |
| Adani Transmission | 3,07,447 | 1,56,342 | -49.14 |
| Adam Wilmar | 74,491 | 52,039 | -30.14 |
| Ambuja cements | 98,994 | 74,204 | -25.04 |
| Total market capitalization | 19,18,056 | 10,07,999 | -47.44 |