Adani Enterprises continue with losses, other group firms follow suit

NEW DELHI, (PTI): Shares of Adani Group firms were still volatile on Thursday morning after the group’s chairman decided not to go ahead with its follow-on public offer yesterday.

In Thursday’s morning trade, shares of Adani Group’s flagship firm, Adani Enterprises, were down 9.80 per cent to Rs 1,929.65 apiece. In five sessions, it has lost more than Rs 1,337.30 or declined over 40 per cent.

Adani Ports and SEZ lost Rs 21 or dropped 4.36 per cent to Rs 473.55 on Thursday morning. The firm’s shares had lost more than Rs 208 or 30.45 per cent in a period of five days. Adani Green’s shares dropped 10 per cent to Rs 1,039 apiece, while it lost Rs 588 36.15 per cent in just five days.

FMCG firm Adani Wilmar dropped 5 per cent to Rs 421 apiece on Thursday morning while it lost Rs 95 or dropped more than 18 per cent in a span of five days. Adani Transmission shares went down 10 per cent flat to Rs 1,551.15 apiece in the morning trade on Thursday. The firm had lost Rs 575 or dropped 27 per cent in just 5 days.

The volatility with Adani Group firms continued on Thursday after the Board of Adani Enterprises Ltd (AEL) decided not to go-ahead with the fully subscribed follow-on public offer (FPO). Yesterday, the company said that given the unprecedented situation and the current market volatility, it “aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction”.

On Thursday, Adani Group Chairman Gautam Adani said it would not be “morally correct” to go ahead with the Rs 20,000-crore share in the current market condition. “After a fully subscribed FPO, yesterday’s decision of its withdrawal would have surprised many. But considering the volatility of the market seen yesterday, the board strongly felt that it would not be morally correct to proceed with the FPO,” Adani said in his address to investors after the withdrawal of the fully subscribed FPO.

Adani said in his humble journey of over four decades as an entrepreneur, “I have been blessed to receive overwhelming support from all stakeholders, particularly the investor community. It is important for me to confess that whatever little I have achieved in life is due to the faith and trust reposed by them. I owe all my success to them.”

Speaking on Adani Group firms, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The excessive volatility triggered by the crash in Adani stocks will die down after some time. FIIs (foreign institutional investors) will have to invest in India if they are to benefit from the India growth story.” (PTI)