Shares of Adani Power fell for the fourth straight session today amid a rout in the Adani Group stocks, triggered by allegations from Hindenburg Research related to accounting frauds, stock manipulations and money laundering. Shares of Adani Power crashed 5 per cent to Rs 223.9 amid negative sentiment in the broader market today. The stock has lost 18.52% in the last four sessions.
Market cap of Adani Power plunged to Rs 86,356 crore. The stock opened 5% lower on BSE. With today’s fall, the stock is down 25.29 percent in 2023. However, the stock has gained 110.73% in a year, even after accounting for today’s fall. A total of 0.61 lakh shares of the firm changed hands, amounting to a turnover of Rs 1.37 crore on BSE.
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In terms of technicals, the relative strength index (RSI) of the firm stands at 23.6, signaling the stock is trading in oversold territory. Adani Power stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Meanwhile, Abu Dhabi-based diversified conglomerate International Holding Co (IHC) said it would invest $400 million into the follow-on public offer (FPO) of Adani Enterprises. The investment commitment from IHC comes at a time when the mega FPO of billionaire Gautam Adani’s flagship company is struggling to sail through after the massive sell-off in stocks last week.
In an exclusive interview to Business Today, the Adani Group has accused Hindenburg Research of not doing proper research, and “copy-pasting” from the company disclosures. It also said that they either did not do proper research or did proper research but misled the public. Adani Group Chief Financial Officer Jugeshinder Singh told Managing Editor, Business Today Television, Siddharth Zarabi. Singh said that Hindenburg needs to be questioned why they misrepresented in the questions they asked Adani Group in their report.
A report by Hindenburg Research alleging accounting frauds, stock manipulations and money laundering last week led to negative sentiment around the Adani Group stocks. Adani Group called Hindenburg's report as maliciously mischievous and unresearched, which, it said, adversely affected the Adani Group, its shareholders and investors.
Adani Group had said that the timing of the Hindenburg report’s publication clearly betrays a brazen, mala fide intention to undermine the group’s reputation with the principal objective of damaging the follow-on public offering from Adani Enterprises, which is the biggest FPO ever in India.
Meanwhile, Sensex was trading 352 points or 0.59 per cent lower at 59,148 and Nifty lost 90 points to 17,559 at 10:10 am today.
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