Why Adani Group Lost Over Rs 40,000 Crore Of M-Cap In 1 Day? Stocks Fall By 2-6% - Explained

Adani Group shares are in deep red on Monday after Deloitte Haskins & Sells LLP tendered its resignation from the Statutory Auditors post of Adani Ports. But that was not all that led to battering of Adani stocks! Sebi has sought 15 more days time in submitting its final report on Adani Group over the allegations of US-based short seller Hindenburg. Adani Group together has lost more than Rs 41,000 crore market value. The ten-listed stocks have nosedived by 2-6% on exchanges.

At the time of writing, Adani Enterprises traded at Rs 2474.90 apiece, down by Rs 63.55 or 2.50% on BSE. Meanwhile, Adani Ports shed 1.40% to trade at Rs 789.45 apiece, Adani Power was down by nearly a per cent to trade at Rs 285.95 apiece, while Adani Transmission shares dipped by 2.3% to Rs 811.95 apiece. Further, Adani Total Gas stock tumbled 1.70% to Rs 637.95 apiece, Adani Green Energy dipped by 1.85% to Rs 953.50 apiece, and Adani Wilmar declined by 1.9% to Rs 376.10 apiece.

Media stock NDTV also shed 1.9% to trade at Rs 218.90 apiece, while cement stocks like Ambuja Cements plummeted by 3.2% to trade at Rs 442 apiece, and ACC stock price slipped by 2.12% to Rs 1913.30 apiece.

In the early deals, the flagship firm Adani Enterprises nosedived by Rs 5.41%, losing more than Rs 15,600 crore market cap. Adani Transmission also tumbled by 5%, while Adani Ports, Adani Green, Adani Power, Adani Total Gas, Ambuja Cements, NDTV and Adani Wilmar dropped in the range of 3% to 4.5%. ACC was the only share to have the least quantum of drop compared to other Adani stocks, falling 2.2% on BSE.

Adani Group's market value together declined by over Rs 41,000 crore in the early deals.

Last week, on Friday, the market cap of the Group stood at nearly Rs 10.70 lakh crore.

Deloitte Haskins tendered their resignation vide their letters dated August 12, 2023, from the position of Statutory Auditors of Adani Ports and its material subsidiaries, as per the regulatory filing.

Notably, since May 2017, Deloitte has been Adani Ports' statutory auditor. In July last year, the company reappointed Deloitte as its statutory auditor for another term of five years.

G. K. Pillai, Chairman of the Audit Committee of the Adani Ports in the filing said, " Deloitte indicated a lack of a wider audit role as auditors of other listed Adani portfolio companies." However, the Audit Committee was of the view that the grounds advanced by Deloitte for resignation as Statutory Auditor were not convincing or sufficient to warrant such a move. It was also conveyed that it is not within the remit of the APSEZ and its Board to recommend group-wide appointments as other listed Adani portfolio companies are completely independent, with separate boards, executive teams and minority shareholders.

Due to this, Deloitte was not willing to continue as APSEZ's statutory auditor and, therefore, it was agreed to amicably end the client-auditor contractual relationship between APSEZ and Deloitte.

With Deloitte's exit, the company has appointed M S K A & Associates as the Statutory Auditors to fill the casual vacancy caused by the resignation of Deloitte.

Apart from this, on Monday, Sebi sought 15 days more to complete its report on Adani-Hindenburg row. While requesting, Sebi informed the Supreme Court that substantial progress had been made in the probe.

Gautam Adani's energy-to-port empire came under the radar of the Supreme Court after a US-based short seller Hindenburg Research dropped a mind-boggling report accusing the conglomerate of various allegations. The short seller's report which came in late January led to billions of dollars of the market rout, volatile markets, protests from oppositions and Sebi investigations which are still underway.

Earlier, Sebi had sought six months extension in submitting the final report, for which the expiry date was August 14, 2023.