Adani group companies market capitalisation erosion tops $100 billion

The market cap erosion of Gautam Adani group stocks topped $106 billion (Rs 8.8 trillion) a day after flagship firm Adani Enterprises (AEL) pulled the plug on its fully-subscribed $2.4 billion (Rs 20,000-crore) follow-on public offering (FPO).

Stocks beginning with the Adani name lost between 5 and 27 per cent on Thursday, with AEL falling the maximum at 27 per cent and extending its six-day loss to 55 per cent. Barring AEL and Adani Ports, all these stocks hit their lower trading limit.

Newly-acquired ACC and Ambuja Cements managed to eke out gains of 0.1 per cent 5.3 per cent. Analysts said the fresh pain points for the group were cancellation of the FPO, refusal of some banks to accept Adani group securities as collateral and fears of invocation of pledged shares.

The allegations by US-based Hindenburg Research and the unprecedented drop in market value of Adani group stocks has now become a national political issue with lawmakers disrupting parliament and demanding answers from the Narendra Modi government.