Adani group stocks tumble amid reports of SEBI probe: Group market capitalisation falls by ₹22,000 crore

• The sell-off in Adani group stocks resumed on Monday amid reports of a probe by market regulator SEBI.
  
• The Adani group’s combined market capitalisation fell by ₹21,987 crore on Monday.
  
• SEBI is reportedly investigating a potential breach of rules regarding related party transactions in deals involving at least three offshore entities with links to Gautam Adani’s brother, Vinod Adani.
  

After rising for two sessions, the sell-off in Adani group stocks resumed on Monday amid reports of a probe by market regulator Securities and Exchange Board of India (SEBI) into the group’s offshore dealings.

As a result, the Adani group’s combined market capitalisation fell by ₹21,987 crore on Monday, kicking off the FY23 on a negative note.

According to a Reuters report, SEBI is investigating a potential breach of rules regarding related party transactions in deals involving at least three offshore entities with links to Gautam Adani’s brother, Vinod Adani.

Reacting to the news, eight out of the ten Adani group stocks closed in the red on Monday, with Adani Green falling the most and accounting for a third of the total decline in the group’s market capitalisation.

Company	Current market price	Change in market cap
Adani Green	₹837.45	-₹7,691 crore
Adani Transmission	₹943.4	-₹6,154 crore
Adani Enterprises	₹1,717.45	-₹5,132 crore
Adani Total Gas	₹845.35	-₹2,737 crore
Adani Wilmar	₹395.7	-₹1,389 crore
Adani Ports & SEZ	₹627.8	-₹948 crore
Adani Power	₹190.55	-₹426 crore
NDTV	₹186.2	-₹37 crore
ACC	₹1,709	₹787 crore
Ambuja Cements	₹374.8	₹1,741 crore
Total		-₹21,987 crore

Source: NSE, as on April 3, 2023

In January, the Hindenburg report which kickstarted a massive fall in Adani group stock prices – alleged that it identified 38 shell entities in Mauritius, either controlled by Vinod Adani or his close associates.

“Many of the Vinod Adani-associated entities have no obvious signs of operations, including no reported employees, no independent addresses or phone numbers and no meaningful online presence,” the report had said.

Since the report was published, the combined market capitalisation of the Adani group has declined by ₹11.81 lakh crore – from ₹21.96 lakh crore on January 24 to ₹10.15 lakh crore today.

Four Adani group stocks still down at least 50%

Four Adani group stocks are still down at least 50% of their value since January 24. Adani Total Gas and Adani Transmission have declined the most, while Ambuja Cements and Adani Ports & SEZ have been the most resilient.

Company	Total decline since January 24
Adani Total Gas	-78%
Adani Transmission	-66%
Adani Green	-56%
Adani Enterprises	-50%
NDTV	-34%
Adani Wilmar	-31%
Adani Power	-31%
ACC	-27%
Ambuja Cements	-25%
Adani Ports & SEZ	-18%

Source: NSE, as on April 3, 2023

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