Gautam Adani stocks lose $10 billion in value as MSCI exclusion weighs


MUMBAI: The Adani Group led by Gautam Adani is facing its worst week since late February as two of its companies are removed from the indexes MSCI and concerns about potential dilution from a fundraising plan wiped out the $10.1 billion market value.
The group’s market cap fell to $107 billion this week, with Adani Total Gas and Adani Transmission — two stocks dropped by MSCI — heading for their worst weeks since late February. According to Brian Freitas, an independent equity analyst who publishes on Smartkarma, the MSCI exclusions are expected to trigger around $390 million in sales from global passive funds later this month.
Flagship Adani Enterprises, incubator for many of the group’s investments, is also expecting a weekly loss of nearly 4%, its highest since March. The company and its transferring entity last week announced plans to raise $2.6 billion through a qualifying institutional placement or otherwise, raising equity dilution concerns.
“If shares are undervalued on a QIP issue, it could be taken as a sign of weakness or desperation,” Arpit Shah, fund manager at Care Portfolio Managers, said via email.
allegations of fraud Hindenburg research in January wiped out the group’s market value by over $150 billion by the end of February. Losses were pared over the past two months when emerging-markets investor GQG Partners bought stakes in four companies in early March.
Adani has denied Hindenburg’s allegations and, following the report, has taken steps to allay investors’ concerns about debt and corporate governance.

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