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Adani Total Gas Ltd., a subsidiary of the Adani Group, has witnessed a significant drop in stock valuation, validating concerns raised by US short seller Hindenburg Research nine months ago. Hindenburg Research had forewarned of an 85% downside in Adani shares, a prediction that has now materialized for the conglomerate’s city-gas distributor.
The stock of Adani Total Gas slid by as much as 2.6% on Monday, reaching 575.7 rupees, marking an 85% decline from its January 24 closing price of 3,891.75 rupees. While some Adani companies have seen stock and bond recoveries, particularly following investments from GQG Partners, Adani Total Gas has been the hardest hit by this devaluation.
Adding to Adani Total Gas’s challenges is the recent policy announcement by the New Delhi state government, mandating the conversion of all commercial vehicles to electric vehicles (EVs) by 2030. This policy is seen as a significant headwind for the company, contributing to a 6% loss in its shares this month.
Hindenburg Research’s initial report, released on January 24, alleged widespread corporate malfeasance within the Adani Group, leading to a staggering market value erosion of over $150 billion at one point. The Adani Group has consistently denied any wrongdoing, and an interim report from an Indian Supreme Court-appointed panel in May found no evidence of stock-price manipulation.
As Adani Total Gas grapples with the consequences of this stock decline and navigates the implications of New Delhi’s EV conversion policy, the broader Adani Group continues to face scrutiny and challenges in the financial markets. The saga reflects the volatility and complexities surrounding one of India’s largest and most influential business conglomerates.
Sources By Agencies
