Adani Transmission shares hit 52-week low after S&P places ESG Rating under review

Shares of Adani Transmission Ltd (ATL) slipped to their 52-week low today after S&P Global Ratings placed the Adani Group firm’s ESG evaluation ‘under review’ following Hindenburg Research’s report on the conglomerate led by Gautam Adani. Adani Transmission stock hit lower circuit of 5% to Rs 918.65 (a fresh 52-week low) against the previous close of Rs 966.95 on BSE. The stock opened lower at Rs 950 on BSE today.

Adani Transmission shares are trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has lost 54.44 percent in a year and fallen 64.45 percent since the beginning of this year.

Total 0.93 lakh shares changed hands amounting to a turnover of Rs 8.77 crore on BSE. Market cap of the firm fell to Rs 1.02 lakh crore. The large-cap stock hit a 52-week high of Rs 4238.55 on September 16, 2022. 

S&P said that the allegations related to group governance and disclosures may affect the appetite of fund providers and business partners in supporting ATL’s growth. “This may raise financial and operational risks for the company,” it said. 

“S&P Global Ratings today placed its ESG Evaluation of 63 for India-based Adani Transmission Ltd. [ATL] under review. This follows recent allegations of significant governance issues at the Adani group of companies,” it said. 

“Our current assessment of ATL’s governance factors in some controlling shareholder’s weight in decision-making, including on related-party transactions. Common parentage and name-sharing also expose ATL to reputational risks from the wider Adani group,” stated the rating agency, further adding that it aims to complete the review in the coming months.  

The Hindenburg report, which was released on January 24 this year led to weak sentiment around the Adani Group stocks.

The Adani Transmission stock has lost 66.62% or Rs 1836 since  February 24.

In response the Group called Hindenburg 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 was the biggest FPO ever in India.

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