Adani Total Gas stock down 85%, reaches Hindenburg's predicted valuation
Nine months after Hindenburg Research, the US short-seller, forewarned of an 85% decline in Adani shares, Adani Total Gas Ltd. has reached that level, making it the first company among the conglomerate's seven listed entities to experience such a major devaluation. On October 23, the shares dipped as much as 3.23% to make the day's low at Rs. 571.70. This is a huge decline since January 24's closing price of Rs. 3,891.75, when the short-seller published its report.
Hindenburg Research's allegations, Adani Group's response
Hindenburg Research in its report accused the Adani Group of wide-ranging corporate malfeasance that led to a market value erosion of over $150 billion (Rs. 1.24 lakh crore) at one point. Adani Group, however, has refuted these claims. In May, a preliminary report from a panel appointed by the Supreme Court found no evidence of stock-price manipulation by the conglomerate.
Delhi's new EV policy adds to the gas company's woes
This month, Adani Total Gas has encountered further obstacles with the new policy from the government of New Delhi, which mandates the conversion of all commercial vehicles to electric vehicles (EVs) by 2030. Although some Adani companies have bounced back, Adani Total Gas remains the most affected among the conglomerate's seven listed firms.
