Adani Total Gas hits over 2-year low; stock slips 26% in six trading days

Shares of Adani Total Gas were locked in the 5 per cent lower circuit for the fifth straight day, quoting at Rs 633.35 on the BSE on Friday, with no buyers seen on the counter. In the past six trading days, the stock has slipped 26 per cent. It is quoting at its lowest level since March 2021. Further. the stock has tanked 84 per cent from its 52-week high level of Rs 3,998.35, touched on January 23, 2023.

A combined 242,000 shares have changed hands, and there are pending sell orders for around 800,000 shares on the NSE and BSE, exchange data shows. In comparison, the S&P BSE Sensex was down 0.17 per cent at 61,328 at 10:13 AM.

Last week, global index provider MSCI dropped Adani Total Gas and Adani Transmission from its India index—a move that will likely result in selling worth Rs 3,200 crore ($390 million) in these two counters by exchange traded funds (ETFs). The change will become effective from May 31.

Shares of Adani Transmission, too, were down 5 per cent to Rs 713.80 on the BSE in the intra-day trade on Friday. The stock of the power transmission firm has slipped 22 per cent in the past six trading days.

In January this year, US-based short seller, Hindenburg Group, had issued a report alleging certain issues against specific Adani's promoted entities one of ATGL promoters, which have been duly denied by Adani group.

To uphold the principles of good governance, Adani Group has undertaken review of transactions referred in the short seller's report (including that of the company) through an independent assessment from law firm. The report confirms company's compliance of applicable laws and regulations, Adani Total Gas said in its Q4 results notes.

Further, in context of the short seller's report, there is a petition filled in the Hon'ble Supreme Court, and SEBI is examining compliances of laws and regulations by conducing enquires to the Group's listed companies. Given the matter is sub-judice the financial statement do not carry any adjustment, it added.

Total Holdings SAS had acquired 411.33 million equity shares of Adani Gas, representing 37.40 per cent of its total paid up share capital, on February 28, 2020 from certain existing members of the promoter group of the Company. Subsequently, Adani Gas became a joint venture company of Adani Group and TOTAL Group which represents 37.40 per cent each and remaining 25.20 per cent by public shareholders. The company changed name to Adani Total Gas to reflect French energy giant Total's stake in the firm.

Adani Total Gas is India's leading private player in developing City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to Industrial, Commercial, Domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector.

Further, ATGL has formed 2 wholly owned subsidiaries namely Adani TotalEnergies E-Mobility and Adani TotalEnergies Biomass for its E-Mobility and Biomass Business respectively.