Adani enterprises shares removed from Dow Jones sustainability indices

Gautam Adani. [File Photo]

Adani Enterprises, the flagship company of the Adani Group will be removed from the Dow Jones Sustainability Indices, prior to open on February 7, 2023, various reports say quoting a note from S&P Dow Jones Indices on February 2, 2023.

As per reports quoting the note, Adani Enterprises would be removed from the indices following a media and stakeholder analysis triggered by allegations of stock manipulation and accounting fraud.

Adani Enterprises along with other group companies have been in the spotlight since a report from Hindenburg research alleging improper use of offshore tax havens and flagged concerns about the high debt and valuations of the seven listed Adani companies, CNBCTV reported.

The report triggered a war of words between Hindenburg and the conglomerate and was published right ahead of Adani Enterprises’ Rs 20,000 crore FPO, which was eventually called off on Wednesday despite achieving full subscription, led mainly by institutional investors.

The firm said pushing ahead with the issue will not be “morally correct” after a massive erosion in stock price, but continued to maintain that the balance sheet remains very healthy with strong cashflow and secure assets. It further said that the FPO being called off will not have any impact on existing operations and future plans.

Shares of Adani Enterprises have now had two consecutive sessions of declines in excess of 25 percent. The stock has corrected nearly 60 percent from its peak of Rs 4,190 on December 21. In fact, the stock has even halved from its now called off FPO price of Rs 3,112 – Rs 3,276.

The seven Adani Group companies have now lost close to Rs 9 lakh crore in market capitalization over the last six trading sessions.

On Thursday, Bloomberg reported that Gautam Adani is in talks with creditors to prepay some loans that are backed by pledged shares, citing sources with knowledge of the matter.

The report quoting the source further said that the group has not faced margin calls on these pledged and is seeking the prepayment proactively.

Ahead of today’s trading session, shares of Adani Enterprises, Adani Ports and Ambuja Cements have been moved into the short-term Additional Surveillance Measures (ASM) framework by the NSE, to curb speculative trading activity.

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